214 10 3494 https://omeka.ibu.edu.ba/files/original/eb7dc03f3d4c40e14777f82237c16516.pdf 91ee1561c92bc958b585cf4ab49563d6 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The effects of akhism principles on today's business life: A case in the western mediterranean region Hilmi Uyar1,Hasan Erdoğan2 1Akdeniz University Social Sciences Institute Department of Econometrics Antalya /TURKEY 2Akdeniz University Ayşe Sak school of Applied Sciences Antalya/TURKEY E-mials: hilmiuyar@gmail.com,hasanerdogan@akdeniz.edu.tr Abstract In historical process, Akhism guided to the commercial life of Turks. It is in close contact with other institutions of the society. With its rules and principles Akhism seeks to establish good relations between people and also organizations. With these perspectives, Akhism has an quite stable place in history. The purpose of today's commercial applications of the principles and implications of the study is to reveal Akhi. In this context, we did a literature review firstly; followed we implied the survey upon small and medium-sized business owners, than collected data and analyzed. Keywords: Akhism principles, producer, seller, shopkeeper 1.INTRODUCTION In the historical progress of nations, economic wealth plays an important role as well as prosperity in social and cultural make-up. When the entire Turkish history is considered, we come across with the institution of Akhism that is both related to the regulation of sociocultural life as well as to the operation of business life within the framework of certain principles and rules. Even though Akhism has aspects in parallel with today’s management philosophies, history has not been immutable and economical activities have changed since the thirteenth-century establishment of Akhism.11 11 ÜLGER B. and ÜLGER G., “Akhism as a Non-Governmental Association Model in the History of the Turkish Nation and an Assessment of Today’s Business Ethics A Relationship or a Contradiction”, Journal of Human Values, 11,19-61 (2005). 176 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Akhism is such a system with its own principles that developing art, trade and economy of the people of during Ottoman and Seljuk. Ahi in Turkish to mean generous, big-hearted, brave derived from the word “akı”. It is thought the word of Akı transformed to Ahi which is meaning to “my brother” when the Turks rule over Anatolian.12 Akhism is a Turk tradesman founding exposed by historical and socioeconomic conditions and based on religion and moral rules. The main purpose of Ahi organization institutionalized over time was to organize the relationship between producer and consumer in best way and to make honesty dominant over business life. Western historians base the origin of Akhism on Futuvva organization that has developed between Arabs in the east. However, they accept Akhism is far different from Futuvva organization and it is an institution unique to the Anatolian Turks.13 Briefly, Akhism is a professional association which is quite common in Turk countries and especially takes reference Islam religion. With its principles and institutional structure Akhism managed trading life of Turks for a long time. The principles of total quality of today’s business and community life became vision and applied rigorously by members of the Akhism ages ago. The mission of Akhism was determined as “services to all” thus, they aimed to protect all people and in this direction they worked and set required organizations. Correct understanding of Akhism, applying of its vision, mission and organization structure upon business life -especially- is very important for Turkey and world. However, the number of investigation of the effects of Akhism over today’s business life is quite low. The purpose of this study is to show the effects of Akhism applied commonly during Seljuk and Ottoman period, over today’s business life. In this context, in the western Mediterranean region of Turkey (Antalya, Burdur, Isparta), surveyed over small-scale tradesmen and the people engaged in commerce and researched their sensation aimed at Akhism principles. 2.THE VISION OF AHI ORGANIZATON To understand the vision of Akhism it is necessary to analyze thoroughly Futuvvatname which is known as Ahi constitution. Futuvvatnames are the books describing principles of Futuvva organizations and rules entrants must conform of this organization. They are 12 GÖLPINARLI A., "İslâm ve Türk İllerinde Fütüvvet Teşkilatı", İ.Ü. İktisat Fakültesi Mecmuası, C. 11, İstanbul, 1950, s.6 13 www.sebilay.org.tr, (25.04.2012). 177 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo regulations that regulate matters that need attention to be organized of tradesman organizations in cities. The book "Kitab'ul-Fütüvve" written by Ebu Abdi'r-Rahman Muhammed İbn el-Hüseyn es-Sülemi is the first known Futuvvatname. 14 The principles in Futuvvatnames are concern of every moment and every aspect of daily life of Ahi. That encompasses the whole of social life. The principles and doctrines which are accepted unchangeable and indispensable constituting the fundamental values of Ahi vision are listed in Futuvvatnames as follows: 15 Not to leave prayer (ritual of worship centered in prayer). Because prayer keeps away from all forms of evil. Having modesty. Modesty, increases people’s reputation in the community. 1. Not to be a slave of the soul. The slavery of the soul is the beginning of desire and behavior in poor work. 2. Not to be a slave of life of the world. Exalting the dignity of man destroys the mortal ones. 3. Having halal (legitimate) earnings. The thing which is halal is to eat something gained by person’s hand and work. It is one of the most important and indispensable principle of Akhism. This principle has led working life to a dynamic state. 4. Giving and bestowing upon needy people. It is one of the fundamental principles must be based on the generosity and assistance of social and economic life. Provides together with others to reach higher goals. 5. Enjoining goodness and keeping from evil. This principle provides eliminations of errors and injustices that may occur through the internal audit of organization of Akhi. At the beginning of the basic components of Akhi vision, “Excellence in Service” is found. This is the most important building block of Akhi philosophy. No matter who or what the art establishment should do the best and perfect of works. This is in a sense, the reason being Akhism. In doing so, planning for the future is very important. Because Akhis are the people who have partner social values and goals, owner of art and implying these objectives together.16 14 GÖLPINARLI A., “İslam ve Türk İllerinde Fütüvvet Teşkilatı ve Kaynakları”, İ.Ü. İktisat Fakültesi Mecmuası, C.II, İstanbul 1950. 15 Tuhfat-al- Vasayâ, s. 216–217. 16 İbn Batuta, s.8 178 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo A non employed Akhi is unthinkable. Every individual learn a profession according to the ability to dexterity and skill, becomes the owner of business and contribute to social life. Unprofessional ones does not help others. Happiness and the power of the society, only if can be possible to make a contribution of every individuals as an owner of art to social life. 17 3.THE MISSION OF AHI ORGANIZATION The basic mission of Akhism is to achieve perfect communities by training excellent individuals, serve humanity and the people in way streamline the world.18 In Akhism individual excellence comes first from everything. For this reason, primarily Ahi should get a move on him. After this takes place, could bring order and service to the world. Then, it is possible to define Akhi as follows: “good-natured, who continue to pray, giving alms, who bestows and obedience to his father, hosts neighbor, who share properties in his hands, who beautify his jobs, saying that is right, trying his deeds to make most beautiful, storing secrets, who in compliance with love, behaves correctly, without a lie and hypocrisy, who gain halal earnings, working like a bee, avoiding unlawful things, giving to anyone even if he is not given, forgiving those who persecute, favors for malfeasant, that comply with Sharia law, protecting the right of siblings, which is sympathetic to his neighbors, asking who away from, visiting patients and inquire after their health.”19 The eyes of Akhi do not see unlawful things; the mouth of Akhi does not speak sin words, the hands of Akhi do not persecute.20 Perfection of society depends on perfection of individuals. When the individuals become perfect, then societies become perfect. The mission of Akhism refers to the excellence from personal to general and from individual to the community. In this context, perfect individuals create great communities. The missions of Akhism related with community in Futuvvatnames, specified briefly the form of services to all. The fundamentals of Akhi founding were so strong and its rules were so acceptable that these rules were taken example for municipal services and for the control of these services; formalized in such a form of law. Akhis bind the rule every stage of production from supplying raw materials to sell. This eliminated many possible frictions between tradesmen. 17 http://www.ahilik.gen.tr/kavram/vizyon2.html, (25.04.2012). 18 Tuhfat-Al Vasayâ, s.209 19 Tuhfat s.209 20 Tuhfat s.209 ayrıca bkz. http://www.ahilik.gen.tr/kavram/misyon.html, (18.04.2012). 179 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Anyone who did not conform to standards, produced low quality goods and services was penalized in such ways. 21 4.RULES OF AKHISM ETHICS22                     Akhis must strive for not a few businesses or art, but a single business or art that is appropriate their capabilities. That must be a business or and art of Akhi protecting his honor appreciating his labor. Ahi should be accurate, shall not deviate from path of labor to earn more than he deserves. Ahi must have knowledge, should love scholars, should not humiliate against of them and should use his information in proper time and place. Must be good-natured and good morals. Must be accurate and reliable in his business and life. Should know that the talking and must remain the promise. Should not distinguish in service. Should not wait response for his goodness. Must be friendly and soft spoken. Should not twit his errors. Should pay attention to friendship; never forget a friend and brotherhood. Should do favor to anyone even he were evil. Should be modest. Should work friendly, willingly and sincerity. Should not betray someone else’s goods. Should be generous. Should judge for his anger. Must keep secrets. Must protect and regard his employees. 5.ADVICE OF AKHI23   Do not look, eat and drink unlawful things! Be accurate, patient and resistant! 21 www.diyadinnet.com (18.04.2012). 22 Burgazi, Burgazi Fütüvvetnamesi. 23 Burgazi, Burgazi Fütüvvetnamesi. 180 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo          Do not tell a lie! Do not begin talking before than elders! Do not trick anyone! Be frugal! Do not desire goods in the world greedily! Do not measure incorrectly and do not weight defectively! Forgive even if you were strong and high case! Behave softly even if you were angry! Be a generous even if you were needy! 6.REFLECTIONS OF AKHISM PRINCIPLES ON TODAY’S BUSINESS LIFE In the study to determine the effects of Akhism on today’s artisans and craftsmen, 5 Likert scale questionnaire designed on the basis of fundamental principles of Akhism and 29 questions were asked to participants. Questionnaire applied over randomly selected eighteen years and over 450 owner of the business organization. The data collected from fieldwork conducted in Turkey’s western Mediterranean analyzed using package programs SPSS 16.0 TM and Stata . Because of reliability problems, 35 questionnaires were removed and continued with 415 questionnaires to study. 7.DEMOGRAPHIC INFORMATION According to the survey respondents' demographic information is shaped as follows:  Regional and sex distribution is as follows: GAZİPAŞA ALANYA BURDUR MANAVGAT ANTALYA CITY CENTER FİNİKE ISPARTA M F M F M F M F M F M F M F 18–30 5 6 16 7 9 3 9 6 6 7 6 4 17 10 31–45 4 4 14 5 10 1 8 5 9 10 6 5 22 8 46–60 6 3 24 3 8 1 10 2 8 6 7 1 19 5 61-* 6 1 26 0 8 0 7 1 12 2 8 0 18 1 Age / Sex 181 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo TOTAL 35   95 40 48 60 37 100 Only in respect to the age distribution is as follows: Male Female Age / Sex 18–30 68 43 31–45 73 38 46–60 82 21 61-* 85 5 TOTAL 415 According to this distribution it is observed that for each age group the age distribution of male distribute properly, but of female decreasing with increasing age.  The distribution of gender and education level as follows: Education / Sex Male Female Male Female İllitarate 34 5 %8,1 %1,2 Primary Educaion 123 45 % 29,6 %10,8 High school 87 32 %20,9 %7,7 Üniversity 52 23 %12,5 %5,5 Master 12 2 %2,8 %0,4 According the data in the table male with primary education has the highest rate with 29.6% 182 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo It is seen that primary education level is much more than other levels. It is also seen that the rate of university and master is quite low. 8.THE EFFECTS OF PRINCIPLES OF AKHISM ON TODAY’S BUSINESS LIFE The SPSS output giving the average of responses to questions as follows: propositions Std. Std. Error N Mean Deviation Mean In business life good temperament and good morals is important for me. 415 3,971 0,88691 0,04354 Promise is just like honor for me even it was not written. I respect my promises, not writings. 415 2,737 1,14459 0,05619 I do favors for everyone and aspect for their kindness. 415 3,947 0,81773 0,04014 I pay attention for justice, measure and weight. 415 3,947 0,89393 0,04388 I do my job sincerely, honesty and friendly. 415 3,952 0,84989 0,04172 I make proximity and hang on my neighbor’s shortages. 415 3,957 0,86144 0,04229 I call myself instead of someone else in looking for errors. 415 3,986 0,89539 0,04395 I am proud to be and have time with the poor fellow. 415 4,043 0,84445 0,04145 I do not respect to the rich ones due to richness of them. 415 3,889 0,91274 0,0448 I speak the truth and do not give up the truth 415 3,986 0,93498 0,0459 I protect my employees and their rights. 415 3,971 0,90577 0,04446 I perform god’s orders and prohibitions in the open and the secret. 415 3,971 0,88962 0,04367 I avoid the bad words and insults. 415 3,937 0,92779 0,04554 I do favor to anyone even he were evil. 415 3,961 0,85322 0,04188 I show patience against the evil and trouble. 415 3,995 0,92207 0,04526 I sincere in my belief and worship. 415 3,974 0,88562 0,04347 I don’t accredit the goods of mortal world. 415 4,031 0,88546 0,04347 I do not observe anything for my goodness and charity except of god’s sake. 415 3,843 0,90466 0,04441 183 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo I try to my consumers’ heart rather than to sell more expensive. 415 2,901 1,0934 0,05367 I’ll be friendly with people knowledgeable and ask for their though. 415 4,053 0,76271 0,03744 I only trust on god every time and every where. 415 4,089 0,82781 0,04064 Custom and usage are very important for me. 415 4,106 0,79146 0,03885 I content with less, give thanks god with much. 415 4,058 0,86897 0,04266 I make sacrifices for the sake of something. 415 4,161 0,77113 0,03785 I maintain the right and object to evil. 415 4,108 0,82257 0,04038 I firmly tied up to my religion. 415 3,925 0,88559 0,04347 I believe that anyone tied up to religion should be faithful in commerce. 415 3,978 0,92836 0,04557 I try my neighbor to win as least as I win. 415 3,111 1,07103 0,05257 (5: “strongly agree”, 4: “agree”, 3: “neither agrees nor disagrees” 2: “disagree” 1: “strongly disagree”) Given the means the result of “strongly agree” was not observed. The mean of 18 questions is in the shape of “neither agree nor disagree” and the mean of 8 questions is in the shape of “agree”. Especially, three of the questions were answered very low rate. These questions are examined below. If we look at these questions by adding gender factor, questions and averages of answers is as follows:  Promise is just like honor for me even it was not written. I respect my promises, not writings. Gender Frequency Mean Male 313 2,7348 Female 102 2,7451 Both female and male answered this question as “disagree” with the average of 2.7.  I try to my consumers’ heart rather than to sell more expensive. 184 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Gender Frequency Mean Male 313 2,9553 Female 102 2,7353 It can be seen that both sexes answered to this question as “disagree”.  I try my neighbor to win as least as I win. Gender Frequency Mean Male 313 3,0575 Female 102 3,2745 Participants answered this question as “neither agree, nor disagree”. Considering this three major principle, regardless of gender, it is seen that today’s business life is staying far away from these principles. If we analyze the variables according to the region, means are as follows: REGION 185 Average Result Gazipaşa 3.76 Neither agree, nor disagree Alanya 4.10 Agree Manavgat 3.92 Neither agree, nor disagree Antalya City Center 3.59 Neither agree, nor disagree �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Finike 4.05 Agree Isparta 3.91 Neither agree, nor disagree Serik 3.54 Neither agree, nor disagree Within the survey field of application only Alanya and Finike answered as “agree”, other regions answered as “neither agree nor disagree”. Alanya has the highest level with the average of 4.10; Antalya city center and Serik has the least level. Thus, Alanya is mostly keeping the rules and morals of Akhi. From this point, the effects of Akhism can be mentioned today, but it is obvious that Akhism impact is much weakened. If we analyze the variables according to the education, means are as follows: Education average İllitarate 3.95 Primary Educaion 3.77 High school 3.76 Üniversity 3.65 Master 3.59 As can be seen, whether averages are close to each other, there is an inverse ratio that is averages decreasing towards education level increase. If we analyze the variables according to the income level, means are as follows: İncome level (TL) 186 average 500–1000 3.91 1000–2000 3.90 2000–3000 3.93 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 3000–5000 3.83 5000–7500 3.92 7500–10000 3.83 10000-* 3.87 When compared income level almost all levels has close averages. Thus, income level is not a characteristic parameter. If we analyze the variables according to the professional experience, means are as follows: Professional experience (year) average 1–5 3.55 6–10 3.65 11–20 3.88 20-* 3.89 As professional experience increases, the rate of acceptance of the principles of Akhism increases. If we analyze the variables according to the age, means are as follows: age average 18–30 3.67 31–45 3.71 46–60 3.89 60-* 4.17 As it seen, the age variable is quite decisive on the principles and ethics of Akhism. Acceptance rate of principles of Akhi increased with increasing age. In other words, the younger generation less adopted the concept of Akhi. 187 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 9.GENERAL EVALUATION AND CONCLUSION Although the moral and principles of Akhism largely lost its impact, maintained its existence in today’s artisans and craftsmen. The rate of acceptance increases with age and professional experience increase (directly proportional); decreases with education level increase (inverse proportional). In addition, adopting the principles of Akhism rates also vary regionally. It is remarkable that Akhism is more adopted in such regions far from metropolis as Alanya, Finike, Manavgat and Isparta. Correct understanding of principles and morals of Akhism is very important in terms of tradesmen and artisans, and even country’s economy. Who do not know the history could hardly speculate future effectively. However, the Akhi institution and its brought poorly understood by young generations especially. Knowledge of past practices which enlightened business world for centuries and accepted as model for business and personal relationships will help both produce excellent products and exclusion of trust and honesty in consumer relations. With this awareness, it is borne in mind that there are very important duties, to all sections of society and primarily to educators. REFERENCES Abdülkadir GÖLPINARLI, "İslâm ve Türk İllerinde Fütüvvet Teşkilatı", İ.Ü. İktisat Fakültesi Mecmuası, C. 11, İstanbul, 1950. Abdülkadir GÖLPINARLI, “İslam ve Türk İllerinde Fütüvvet Teşkilatı ve Kaynakları”, İ.Ü. İktisat Fakültesi Mecmuası, C.II, İstanbul 1950. Billur ÜLGER and Gürdal ÜLGER, “Akhism as a Non-Governmental Association Model in the History of the Turkish Nation and an Assessment of Today’s Business Ethics A Relationship or a Contradiction”, Journal of Human Values, 11,19-61 (2005). http://www.ahilik.gen.tr/kavram/vizyon2.html, (25.04.2012). Burgazi, Burgazi Fütüvvetnamesi. www.diyadinnet.com (18.04.2012). 188 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo İbn Batuta Seyahatnamesi Seçmeler, Çev. İsmet Parmaksızoğlu, MEB Yay, İstanbul, 1993. www.sebilay.org.tr, (25.04.2012). Tuhfat-Al-Vasayâ. Analysis of Factors Affecting the Life Satisfaction of Household Heads Living in Urban Areas: A Case of West Mediterranean Region Ali Riza Aktas1, Burhan Ozkan2, Onur Oku1 1Akdeniz University, Alanya Faculty of Business, Economics and Finance Dept. 2Akdeniz University, Faculty of Agriculture, Agriculture Economics Dept. E-mails: alirizaaktas@akdeniz.edu.tr,bozkan@akdeniz.edu.tr,onuroku@akdeniz.edu.tr Abstract Since the early ages of history, individuals have sought life satisfaction and considered it as a life goal. Because of this fact, the term life satisfaction has kept its importance in time and has been the focus of many studies. Life satisfaction is seen as a positive value gained by an individual’s own evaluation of the quality of life as a whole, therefore may be described as subjective. Nevertheless, studies made about life satisfaction use both subjective and objective indicators. Life satisfaction is partially conceptualized as the result of satisfaction related to various life fields such as work, family, health, etc. and it is assumed that the effects of environmental conditions highly help satisfaction related with life fields. When studies about life satisfaction are taken into consideration, it is notable that the term job satisfaction is generally emphasized. However, studies show that job satisfaction can explain only a few of the changes in life satisfaction. In this study, it is aimed to determine the socioeconomic factors affecting the life satisfaction of household heads by using data from questionnaires and Logit model. “Unclustered Single-Stage Simple Random Probability Sampling Method” was used to apply the questionnaires to 490 household heads living in city centers of Antalya, Isparta and Burdur. In order to determine the probability of whether the household heads were satisfied with their lives or not, explanatory variables oriented to the current perceptions of household heads were included to the model in the study in addition to the demographic variables. Demographic variables were included to the model as the dummy 189 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1167 Title A name given to the resource The effects of akhism principles on today's business life: A case in the western mediterranean region Author Author Hilmi, Uyar Abstract A summary of the resource. In historical process, Akhism guided to the commercial life of Turks. It is in close contact with other institutions of the society. With its rules and principles Akhism seeks to establish good relations between people and also organizations. With these perspectives, Akhism has an quite stable place in history. The purpose of today's commercial applications of the principles and implications of the study is to reveal Akhi. In this context, we did a literature review firstly; followed we implied the survey upon small and medium-sized business owners, than collected data and analyzed. Keywords: Akhism principles, producer, seller, shopkeeper Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/84719377efd977e3e9be07d21ca21f86.pdf a67930dae22fe8c2180d1f591a2c8542 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo [4] Z.Hasan (2001-2002) Recent Financial Crisis in Malaysia: Response, Results, Challenges, “The Indian Economic Journal, Vol. 49 No.1, pp.28-49 [5] Z. Hasan (2010) Dubai Financial Crisis: Causes, Bailout and After, Journal of Islamic Banking & Finance, Vol. 27, No. 3, pp. 47-55 [6] http://www.cato.org/pubs/pas/pa017.html (accessed from 31.01.2012) [7] http://208.43.71.196-static.reverse.softlayer.com/english/politics/3410/429108.html (accessed from 02.02.2012) [8] Z. Hasan (2011) (unpublished), Money creation and control from Islamic perspective, Department of Economics & Governance, INCEIF: Global University of Islamic Finance [9] M. A . Haneef and E. R. Barakat (2006) (A.D/1427 A.H), Must Money Be Limited to Only Gold and Silver?: A Survey of Fiqhi Opinions and Some Implications, JKAU: Islamic Econ., Vol. 19, No. 1, pp: 21-34 [10] C. Murat (2010): The Case Against the Islamic Gold Dinar, INCEIF, Kuala Lumpur, Unpublished. [11] A. B. B. M. Yusuf, et al. (2002) The Implementation of Gold Dinar is It the End of Speculative Measures?, Journal of Economic Cooperation, 23-3, pp. 71-84 [12] Reuters. "Malaysia Plans To Initially Use Gold Dinar Within Small Group" The Star, 2/5/2002. [13] A. K. M. Meera & M. Larbani (2003) The Gold Dinar: The Next Component in Islamic Economics, Banking and Finance, International Conference on Banking, Monash University, Prato, Italy. [14] A.K.M. Meera (2002) The Islamic Gold Dinar, Pelanduk Publications, Kuala Lumpur, [15] http://www.goldcentro.com/home (accessed from 25th January 2012) [16] www.kitco.com (accessed from 4.2.2012) Quality Costs Accounting And A Firm Application Hilmi Kirlioğlu, Zülküf Çevik, Sakarya University, Sakarya, Turkey E –mails: hilmik@sakarya.edu.tr, zcevik@sakarya.edu.tr Abstract Contemporarily, the competition in the markets has thoroughly heated up. Many companies try to decrease their costs in order to survive in this cruel market. In this respects, the quality costs gain importance in all over the world and in Turkey, too. Companies need to gaining profit for sustainability. And also gaining profit is one and first of companies’ two basic goals. In order to achieve this first goal and to gain sustainability, companies have to provide customers’ and potential costumers’ needs and demand as well as 44 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo they do, and also they should gain sustainable competitive advantage by improving its technology, and its product quality. With the globalization and non-boarding trading, the markets turned into cruel competitive place. In that kind of markets, unfortunately, using low pricing model is not enough for selling goods and services. Companies also need to provide high quality products. In other words, being successful in the global markets, the companies need to have not only low price products, but also high quality products. As it is stated above, in order to gain sustainable competitive advantages in the market, companies need to act two actions at the same time. Firstly, improving the quality of products and services causes gaining sustainable competitive advantages in the market. Secondly, decreasing production costs by improving efficiency in order to promoting the product, brand or company in the market.In addition, the quality cost system utilizes the production efficiency. Therefore, the quality cost system should be established in every company in which it can be applicable. Keywords: Total Quality Management, Quality Costs, Managerial Accounting. 1.INTRODUCTION In recent years, competitive environment of companies are getting harder. In order to have sustainable competitive advantage, companies should produce their products to entirely supply customers’ needs, wants and demands. Subsequently, companies need to have more quality products to remain competitive with other companies. Quality means providing goods and services as suitable for use, and it means fulfilment of clients’ demands. Quality product means having conformity with quality standards in the finished goods. To gain a competitive advantage over rival companies, a company should produce high quality products. While producing high quality product, the company should also take into account its quality costs. Shortly, companies need to produce high quality products in a low quality costs. Consequently, quality and quality costs gain vital importance for a company to survive in a highly competitive market. The importance of this study is to comprehend the necessity of the quality system for a company which operates in the global and local markets. Another importance of the study is to provide recognition of quality costs system benefit to the profit and brand name. The quality costs system causes decreasing in the production cost and increasing in the brand name which will be perceived as producing qualified products. The aims of this study are to show importance of the quality costs for a company which competes in a highly competitive market, and also to demonstrate the necessity of quality costs system in order to have high qualified product with a low quality costs. As it is well known, the quality cost is not a responsibility of a department or an individual, on the contrary, every person in an organization should be responsible for quality. Highly qualified products can be reached by collaboration of all departments in an organization. In this sense, main aim of this study is to demonstrate the function of accounting department in quality costing activities. Those activities can be summarized as, measurement of quality costs, classification of this costs and reporting techniques of the quality costs. In this respect, showing the importance of quality costs’ reporting. 45 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 2.QUALITY Many people define quality in many different ways, because quality is a multi-dimensional concept(Karabınar, 1998). Quality is the degree of consumer satisfaction about the goods and services which they consume. In other words, quality is the degree of fulfilment consumers’ needs and demands for produced product and served services. J. M. Juran, who is one of the quality gurus, thought that quality has many meanings, but two of them have critical importance to managing for quality. First one, quality is the features of products which meet customer needs and thereby provide customer satisfaction. Second one, quality means freedom from deficiencies(Juran & Godfrey, 1998). According to D. C. Montgomery, Quality means fitness for use, and also he defined quality as inversely proportional to variability(Montgomery, 2005). Quality concept is shaped as a conformance of consumers’ needs and use by today’s technologic, economic and social conditions(AYDEMİR, 1999). In addition to those definitions, other quality gurus (Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, Robert M. Pirsig) had been defined quality as(Hoyer & Hoyer, 2001); - - - Crosby defines quality as “conformance to requirements” Feigenbaum’s definition of quality is “the total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectations of the customer.” According to Ishikawa, quality means “quality of work, quality of service, quality of information, quality of process, quality of division, quality of people, including workers, engineers, managers and executives, quality of system, quality of company, quality of objectives, etc.” Pirsig’s definition of quality is that “Quality is a characteristic of thought and statement that is recognized by a nonthinking process. Because definitions are a product of rigid, formal thinking, quality cannot be defined.” To summing up those definitions, quality is the whole good and service characteristic features of fulfilment power for stated and demanded needs. In other words, many quality gurus defined quality in terms of the degree of the product’s conformance to its requirements to maintain customer satisfaction and in terms of a product that contains no defects(Ömürgönülşen, 2009). 2.1.Quality Costs Quality cost is a cost for detection and anchoring of low quality about goods and services. Simply, Costs of quality are the costs which occur because poor quality may or does exist(Hansen & Mowen, 2006). Quality costs are a measurement of the costs particularly related with the accomplishment or non-accomplishment of product or service quality. To making those explanations more specific, Jack Campanella defined cost of quality as(Campanella, 1999); “More specifically, quality costs are the sum of the cost incurred by (a) investing in the prevention of non-conformances to requirements, (b) appraising a product or service for conformance to requirements, and (c) failing to meet requirements.” At the definitions of Campanella, it is understood that the quality costs consist of three main parts; Prevention Costs, Appraisal Costs, Failure Costs. 46 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 2.2.Quality Components 2.2.1.The Quality of Design The quality of design is the measurement of how much intended requirements and expectations reverberate to the finished products by taking into account production factors. Therefore the quality of design is to designate specification and requirements in order to fulfilment of products’ expected usage function. The quality of design is to approach/reach the quality level of intended product. The important issue is whether the final product conforms to the design and performance standards that have been arranged for it, and not the content or validity of those standards(Garvin, 1984). Determine requirements by - Customers’ Surveys, - Sales Call or Visit Reporting Specifications Sellers Report Specifications to the Organization Company Customers Figure 1: The Process of Design Quality Source;TÜRKEL Asuman, “İşletme Yöneticileri için Toplam Kalite Yönetimi Ve İnsan Kaynakları”, Türkmen Kitabevi, İstanbul, 1998, s.36 The figure above represents the process of the design quality. The design quality has started by customers’ surveys and sales calls; afterwards, specifications have been determined. This process can continue to reach perfect products or services. It is the fact that consumers have endless needs so this process can continue after having perfect products. 2.2.2.The Quality of Conformance The quality of conformance is simply expenditures for reaching desired finished products. It is a company’s fulfilment ability of conformity to design specifications for satisfying customers’ needs, wants and demands. In other words, the quality of conformance shows the conformity degree of a product or a unit to the specifications which had been defined at the stage of quality design in production process. The quality of conformance is conformity between the actual specialty of finished products and the intended speciality which is determined at the stage of product design. Sellers Conformance Company Customers Figure 2: The Process of Quality Conformance Source;TÜRKEL Asuman, “İşletme Yöneticileri için Toplam Kalite Yönetimi Ve İnsan Kaynakları”, Türkmen Kitabevi, İstanbul, 1998, s.57 47 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The process of quality conformance is illustrated in the figure above. The aim of this process is to reach conformity with specification which have stated in the stage of product design. As increasing the development of the process of quality conformance, the customer’s complaints and direct material costs, labour costs, maintenance costs would be decreased dramatically, and also the products would be produced in time, in a good quality and in a good price or cost. 2.2.3.The Quality of Usage The quality of usage can be also called the quality of performance. It demonstrates the level of product performance in the market by performing customers’ surveys, sales call and sales analysis. It is an indicator of how well the product working by resulting of marginal consumers usage. Shortly, it is usefulness degree of a product which has been bought by consumers.In this respect the quality of performance is the functional result of design and conformance quality. Having Consumers’ Satisfaction with the help of Usage/Performance Reporting Specifications Sellers Redesign Company Customers Figure 3: The Process of Usage Quality Source;TÜRKEL Asuman, “İşletme Yöneticileri için Toplam Kalite Yönetimi Ve İnsan Kaynakları”, Türkmen Kitabevi, İstanbul, 1998, s.15 Source;TÜRKEL Asuman, “İşletme Yöneticileri için Toplam Kalite Yönetimi Ve İnsan Kaynakları”, Türkmen Kitabevi, İstanbul, 1998, s.15 The process, which shown in the figure 3, illustrates usage quality. This process starts with stating the performance levels of the companies’ products in the market by making customer’s surveys and sales analysis. According to these surveys, company redesigns its product to satisfy consumers’ needs, wants and demands. 2.3.Development of Quality Concept Before 20th century, quality was concerned as detection which means that products had been produced and then checked weather the goods were defective or not. Quality was viewed as a problem and product uniformity had been emphasized and also inspection department was responsible for quality. By the year of 1920, it was the first time to use control schemas in the processes. By means of those schemas, which were developed by Walter Andrew Shewhart, make the process more intelligible about how quality is the outcome (product), how it is reliable, and whether the process under control or not. On the other hand, after 1950s, William Edwards Deming, who is the American quality expert, suggested that the important thing is not the outcomes, it is the process itself. It was really important approach for those years. 48 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo By the year of 1956, Arnold Feigenbaum put quality concepts one step further and come up with Total Quality concepts. According to Feigenbaum, if production department singly interested in quality, the high quality product production would be just a dream. All parts of an organization - Marketing, engineering, purchasing and production department - should be interested in product quality instead. By the 1960s, the concept gained a broader meaning. Quality started to be perceived as a thing that included not only the production process, but also the entire organization(Reid & Sanders, 2004). Early TIME: 1900s 1940s 1960s 1980s and Beyond FOCUS: Inspection Statistical Organizational Sampling Quality Focus Customer Driven Quality Old Concept of Quality: New Concept of Quality: Inspect for quality after production. Build quality into the process. Identify and correct causes of quality problems. Figure 4: Timeline showing the differences between old and new concepts of quality Source: Reid R. Dan, Sanders Nada R. “Operations Management: an Integrated Approach”, Wiley, 2nd edition, 2004, p.143. Until 1970s quality was perceived as something which is just a work consists of inspecting and correcting, even if some quality gurus made good effort for quality approach. In 1980s and beyond, fortunately, the quality was concerned as a management tools. It was viewed as a competitive opportunity. The market and consumer needs gained importance and this importance pushed the companies to produce high quality product, otherwise they would not compete in the market. The inspection aspect of quality has been changed. Quality has been built into production process. Causes of quality problems began to be identified and corrected before the production process and quality was not viewed as an inspection after production, anymore. 3.THE CLASSIFICATION OF QUALITY COSTS In an organization, in order to produce quality product, companies have to be in an activity which started from purchasing raw materials to taking into place quality products. Those activities charge company some costs which can be classified as two main parts – Activity Costs and Investment Costs. Cost of Quality 49 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Activity Costs Investment Costs Prevention Costs Interest Costs Appraisal Costs Amortization Costs Failure Costs Opportunity Costs Internal Failure External Failure Figure 5: The Classification of Quality Costs 1.1. The Cost of Investments in Quality Companies have to bear some costs in order to continue their activities, so it is also natural for a company to bear quality costs in order to emerge in the market. Quality investment costs can be defined as the cost to setup research facilities, tests & trials tools and the depreciation of those tools and facilities for taking into place quality goods and services. Internal Failure Costs External Failure Costs Appraisal Costs Prevention Costs Target Current Situation Figure 6: Total quality costs can be reduced by investing in prevention activities. Source:Sippola, Kari, “Two case studies on real time quality cost measurement in software business”, University of Oulu, Finland, p.77 1.2. The Cost of Activity Quality Having quality product brings some requirements. For example, companies need to bear some costs for quality activities. The most important and well known optimal quality model is TQM. Besides TQM, the prevention-appraisal-failure (PAF) model also known as the optimal quality model (Seokjin & Behnam, 2008). In 1961, Feigenbaum indicated that the required quality activities will incur costs and he categorised quality costs into three main parts – Prevention, Appraisal and Failure Costs – Those can be also stated as PAF model (Jaju & Lakhe, 2009). Failure costs should be taken into consideration as two subtopics which are called internal and external failure costs. Cost of Quality Activities 50 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Prevention costs Appraisal Costs Failure Costs Internal Failure External Failure Figure 7: Classification of Quality Activities Costs Source: SuhansaRodchua, “Factors, Measures, and Problems of Quality Costs Program Implementation in the Manufacturing Environment”, Journal of Industrial Technology, Vol.22, No.4 (Oct. 2006 through Dec. 2006), p.3. In the figure 8, three main classifications of quality activities costs have been shown. Those costs do not occur at the same period of the production process. So, it should be also classified as time periods in which they occurred. Consequently, quality cost classification can be classified in time periods. For example, prevention costs encompass the stage of both pre-production and during production and appraisal costs cover the three stages of production –preproduction, production and after production stage. Failure costs divided into two subtopics which internal failure costs and external failure costs. Internal failure costs encompass the period of both production and after production stages. External failure costs just related with the stage of after sale. Before Production During Production Prevention Costs After Production After Sale Appraisal Costs Internal Failure Costs External Failure Costs Feedback Loop Figure 8: Time-Phased Model for Quality Costs Source: Barfield, Jesse T., Raiborn, Cecily A., Kinney, Michael R., “Cost Accounting: Traditions & Innovations”, South-Western College Pub, 5 edition, 2000, p.317 1.2.1. Prevention Costs Prevention costs are the preliminary activities’ costs to reach quality goals for producing goods and services and to avoid deviations of those goals (Kırlıoğlu, 1998). Prevention costs are the activities costs for preventing nonconformity of the goods and services to the costumers’ wants, needs and expectations. Prevention costs are occurred to prevent low quality in the goods or services being produced (Hansen & Mowen, 2006). If prevention activities are adequately performed, these efforts will result in relatively high quality products and low internal and external failure costs. In other word, prevention costs cause to maintain Appraisal and Failure Cost to minimum. Prevention costs are related with quality planning, designing, implementing and managing the quality system, auditing the system, supplier surveys, and process improvements (Rodchua, 2006). 1.2.2. Appraisal Costs It is an activity cost of measuring the suitability of the product to customers’ needs. It is incurred to identify non-conformance to requirements (Oliver & Qu, 1999). 51 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Those costs are related with the supplier’s and customer’s assessment of purchased materials, processes, intermediates, products and services to assure conformance with the specified requirements (Tsai, 1998). These costs can be summarised as Tests and Trials Costs for Incoming Direct Materials, The Costs of Control and Tests for Laboratory Acceptance, Maintenance of Test Device and Equipment, The costs of associated supplies, materials and employee 1.2.3. Failure Costs Failure costs are the costs of quality deviation to the pre-stated quality specifications and quality target in the any stage of product quality process. As a result of low quality product, companies have to bear additional costs and it indicates the costs of failure. Those costs are not inevitable costs for the companies. It is possible to avoid those costs, so those costs are non-conformity costs in the quality costs (Kırlıoğlu, 1998). Failure costs contain the activities of reproduction of defective and unsuitable product, repairing and maintenance or sending to scrap. So as to avoid those costs, the compulsory investing activities for quality should be increased (Kırlıoğlu, 1998). Failure costs divided into two subtopics as internal failure costs and external failure costs. 1.2.3.1. Internal Failure Costs Those costs are the costs of low quality product which is realised before sales of the product. In other words, these costs arise when the outcomes of production fail to meet stated quality specifications and are noticed before transfer those low quality product to the customers (Vahevanidis, et al., 2009). Generally, external failure costs are consisting of Scrap Costs, Reproduction or Repairing Costs, Re-controlling and Retest Costs. 1.2.3.2. External Failure Costs External failure cost is a component of failure costs. It occurred after selling the poor quality product to the customers. In other words, it is failure costs which come up after delivering the products to the customers (Kaner, 1996). Those costs take place for the reason that the products and services do not conform to specification or requirements and those products do not satisfy customer needs after being delivered to customers (Hansen & Mowen, 2006). It is also incurred by amending failures after transfer the finished goods and products to the customers (Low & Yeo, 1998). In general, external failure costs are consisting of Complaints, Warranty, Refunds and Replacement with updated products, Compromise, Recalling. In the figure 9, it is observable that there is two periods which are initial position of the activity costs of quality and ideal position of it. In the initial position, companies have controllable costs – Prevention and Appraisal –. If a company does not perform prevention and appraisal activities properly, it would cause resultant costs as shown in the figure 9. Those costs consists of five costs components. Improper prevention activities results internal and external failure costs. Inappropriate appraisal costs causes lost reputation, customers’ dissatisfaction and customers incurred. 52 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Figure 9: Costs of Quality Model Source:Beecroft, G.D. (2001), ‘‘Cost of quality and quality planning affect the bottom line’’, The Quality Management Forum, Vol. 27 No. 1, p.6. As shown in figure 9, companies should get rid of the failure costs by adequately performing prevention and appraisal activities. As a result, company should take ideal position in the quality system in order to not to bear failure costs. 1.3. The Quality Costs Measurements Quality costs measuring helps to find out where unnecessary quality costs are occurred, thus management can take actions to eliminate that kind of costs and this elimination will reduce poor quality costs occur. In other saying, the quality costs measurement serves management to determine which area of operation requires preventive measures (Low & Yeo, 1998). 1.4. The Necessity of Measuring Quality Costs Measuring quality costs would show the importance of quality costs and with the help of quality management, it has a positive effect on the workers’ behaviour and attitude for quality improvements. Measurement of quality costs exposes nonconformity which may not be identified by the traditional accounting procedures. Thus, it helps the find out inexactness actions which is ignored or overlooked by traditional implementations. Also measuring quality costs reduce after sale costs in the quality costs category (Kırlıoğlu, 1998). The quality costs information can be used as to monitor financial value of the quality improving programme (Sarıkaya, 2003). 1.5. The Quality Costs Analysis After the collection of data, related with quality costs components, should be analyzed before using in an action. This analysis consists of the relationship between a costs component and other costs components and searches the effect on total costs. Quality costs analyse in weekly, monthly, quarterly, yearly, etc. periods. Company structure should be taken into account in determining the period of analysis (Şimşek, 2001). In order to analyse quality costs, companies need to use some techniques. The analysis techniques for quality costs can be listed as; I. Pareto Analysis, II. Ratio Analysis, III. Correlation Analysis, IV. Trend Analysis, 53 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo V. Regression Analysis. Let’s explain them. 1.5.1. Pareto Analysis It is one of the most used techniques in quality costs analysis. This technique developed by Wilfredo Pareto who is a nineteenth century Italian social scientist and economist. He gave his surname to the technique. Pareto principle is universally known as the 80/20 rule. Pareto find out that principle by pin downing that 80 percent of Italy’s national income is sharing by 20 percent of the Italy’s populations. With the help of Pareto diagrams, problems can be put in order of importance, problems of costs analysis can be easily performed and relative occurrence numbers could be searched simply (Sarıkaya, 2003). In other words, Pareto analysis can be utilized to recognize cost drivers which are accountable for the most of cost occurred by ranking the cost drivers in order of value (Tsai, 1998). Numbers of Defective products The components of the Pareto analysis are arranged in descending order, starting from the left to right, beginning with the biggest elements to lowest one. The technique contains the list of factors which contribute to the problem and sort them in proportion to the size of the contributions (Campanella, 1999). Figure 10: An Example of Pareto Diagram Source: Nilgün Sarıkaya, Toplam Kalite Yönetimi, 1. Baskı, Sakarya: Sakarya Kitabevi, 2003, s.32 In the diagram above, errors in categories are shown in before production decrease after improvements. 1.5.2. Ratio Analysis The Ratio Analysis technique is a comparison of costs information which has significant relationship. In order to make ratio analysis for quality costs performance departmentally, the first step should be gathering the quality costs information and to make a comparison, a convenient common ground should be stated. First one is according to direct labour costs; various quality costs can be analysed by total labour costs or direct labour costs. Internal Failure Costs Prevention Costs or Total Labour Costs Direct Labour Costs Second one is according to production costs; the production costs can also be used in calculating quality costs. Total Quality Costs External Failure Costs or Total Production Costs Total Production Costs Third one is according to unit basis; various quality costs can be analysed by comparison with number of produced products. Appraisal Costs The Amount of Production or Total Quality Costs 54 The Amount of Production �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Another one is according to Sales basis; various quality costs can be analysed by comparison with the amount of sales. Last one is according to the costs of goods sold basis; various quality costs can be analysed by the costs of goods sold. Total Quality Costs Internal Failure Costs or Sales Sales Total Quality Costs Internal Failure Costs or Costs of Goods Sold Costs of Goods Sold After the calculation of the ratio above for current period, the results can enable to conduct an analysis by compared with previous period ratios. Consequently, those ratios provide managers to see the trend of the quality costs ratio among the years. 1.5.3. Correlation Analysis Correlation analysis represents the direction and the power of the relationship between variables. In correlation analysis, the results do not give cause-effect relationship, because there is no dependent and independent variable in this technique (Altunışık, et al., 2005). Correlation coefficient (r) has a value between -1 and +1. If the coefficient value is near to +1, it means that there is a strong positive relationship between two variables. If it is close to -1, it can be said that there is a strong negative relationship. If the correlation coefficient value is nearby zero (0), it indicates that there is no significant relationship between these two variables. 1.5.4. Trend Analysis In the long time period, in order to analyze companies’ situation or tenor, managers need to examine and compare previous years to current year. Therefore, trend analysis is most suitable analysis technique to monitor companies’ trend. In a narrow sense, trend analysis is a kind of analysis which is based on comparing the current period costs to previous period costs. By using basic trend analysis technique, the results above can be indicated about the quality costs (Sipahi & Yıldırım, 2004); - By monitoring the quality costs tenor year by year, the trend can be stated that it tends to increase or decrease, - By stated the investment amount in quality, the effect of quality costs on sales can measured, - By the help of the results above, the decision about investment in quality can be also analysed. Total Quality Costs A trend analysis graph can be drawn as follows; Trend Analysis Serial 1 Years Figure 11: An Example of Trend Analysis Graph 55 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 1.5.5. Regression Analysis Regression analysis examines the relationship between one dependent variable and one or more than one independent variables, in other words, this technique try to explain the changes in dependent variable with the help of independent variables (Altunışık, et al., 2005). The regression analysis is crucial technique for analyzing quality costs. It points out the all factors which has an effect on the quality costs. The regression analysis can be used for answering the questions below (Altunışık, et al., 2005); - Can the changes in dependent variable be explained by independent variables? - How much of the changes in dependent variable can be explained by independent variables? (severity of relationship), - If there is a relationship between dependent and independent variables, what is the direction of the relationship? - When the certain conditions controlled, what is the effect of a specific variable or variable group on other variables? Consequently, quality costs have a vital importance for a company and a well-managed quality costs system helps the companies to reach huge amount of profit. 2. AN APPLICATION ABOUT QUALITY COSTS ACCOUNTING ON THE X ELECTRIC INCORPORATED COMPANY In this part of the study, an application will be handled. Until this part, the literature review about quality costs has been given. The concept mentioned in this study will be applied to a firm’s activities. X Electric Inc. Company was founded in 1990 in Adapazarı, Turkey. The company is a Low Voltage Circuit Breaker manufacturer company. The company was founded with hundred percent national capital. It is settled down in a total area of 40.000 square meters, out of which 25.000 square meters is covered area. The company's product range includes 3250 different types of products. 2.1. The Quality Costs Activities in X Electric Inc. Co. In the firm, the quality costs are analysed, measured and reported in order to decrease some avoidable costs in the firm. The company’s failure costs have a big portion among the all quality costs’ components. In order to measure failure costs, the needed chart and report has been prepared monthly and reported to the related departments. 4.1.1. The Prevention Costs Prevention costs are occurred before the production stage of products. The firm takes precaution in order not to produce poor quality product and increase defective product costs. These precaution activities can be stated as; Quality Planning, Quality Circle, The Training of Quality, Inspection and Tests Instructions, Supplier Quality Planning, Preventive Maintenances, Other Prevention Costs. 4.1.1.1. The Quality Planning The quality planning consists of some activities, in order to reach targeted quality level in products. Those activities can be summarized as preparing quality plans, planning all tests 56 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo equipment, preparing yearly quality plan, preparing quality handbook, quality costs reports, personnel planning and other planning activities for quality. Those all activities prepared by quality control supervisor and quality assurance department manager revise this framework and then if it is adequate, the manager approves it. 4.1.1.2. The Quality Circle The quality circle cost consists of the expenditure for the quality circle groups. In the firm, there are two quality circle groups, each group has four members. These members try to find out inaccuracies in the firm and report these inaccuracies to the quality assurance manager. The quality circle cost contains the members’ wages for spending time on the quality circle activities and other costs which occurred by the activities of these circle groups. 4.1.1.3. The Training of Quality The firm gives their personnel periodically training programme for improving their various skills. These training programmes have a context of improving product quality, so these training costs sending to prevention costs as the training costs of quality. 4.1.1.4. The Inspection and Tests Instructions The firm has instructions to make inspection and test for quality. These instructions started from purchasing row materials to reaching final products. The instructions have been prepared by quality control personnel and quality assurance department. These quality costs occurred from the personnel costs and quality assurance department costs for preparing instruction, and it is transferred to the prevention costs as the inspection and tests instructions costs. 4.1.1.5. Supplier Quality Planning The firm provide its row materials from various suppliers. In addition, the firm purchases some products and semi-finished goods by the way of outsourcing. So, the company has some agreements about the outsourcing activities. In these agreements, company states its condition for products quality. By determination of these conditions, some costs are occurred. These costs should be transferred to prevention costs. 4.1.1.6. Preventive Maintenance Machine and equipment has been maintained periodically, in order not to breakdown and produce poor quality products. This maintenance costs transferred to preventive costs. These costs are determined by related department maintenance employee. 4.1.1.7. Other Prevention Costs These costs are occurred from other prevention activities which are not listed above. For instance, try to find out potential causes of non-conformance, and problem solving activities and so on. Because of these activities, the firm bear labour costs, reporting costs and measurement costs. Those all costs are elements of other prevention costs. 4.1.2. The Appraisal Costs The appraisal costs are occurred from the activities of conforming to quality standards and specifications. It consists of calibration, audit, tests and inspection of products, semi-finished products. In the firm, the appraisal costs occur by the activities which are (1) Inspection and tests of purchased materials, (2) Control, maintenance and calibration of Measurement instruments, (3) Process inspection and tests, (4) Consumable materials for laboratory and tests, (5) Products inspection and tests, (6) Other appraisal costs. 57 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4.1.2.1. Inspection and Tests of Purchased Materials In the firm, first of all, the purchased materials have been checked for quantity control by warehouseman. And then, package, appearance, and conformity inspections are performed by quality control department. Those all activities have been made properly. The results of these inspections are reported and products are stigmatized as approval or rejection. According to this label the approval ones send to warehouse, rejection products returned to the suppliers. 4.1.2.2. Control, Maintenance and Calibration of Measurement Instruments All measurement instruments should be adjusted according to national and international standards in order to check, whether or not, the products produce in conformity with prestated standards and specifications. The costs occurred by making these activities, are transferred to appraisal costs. 4.1.2.3. Process Inspection and Tests The each phase of semi-finished products is checked for conformity with predetermined specifications. These activities performed by doing process inspection and tests. According to the result of inspection and tests, semi-finished products are determined whether they continue the production process or not. 4.1.2.4. Consumable Materials for Laboratory and Tests By performing appraisal activities in the laboratory, some consumable materials are consumed or damaged. Besides, the tests are performed by laboratory assistant. The costs, which are occurred form the activities above and laboratory assistant salary, are added to appraisal costs as consumable materials for laboratory and test costs. 4.1.2.5. Products Inspection and Tests As it is mentioned before the firm is a circuit breaker manufacturing company. The circuit breaker is very risky and essential device in every home, office, and factory and so on. It is most important safety device in wherever electricity has been used. So, in order to prevent adverse effect on people’s safety of life and property, all products of the firm are tested. In other words, one hundred percent of the products are controlled one by one. 4.1.2.6. Other Appraisal Costs These costs consist of all the activities which are not mentioned above. For example, in order to check quality system conformity with quality planning an audit job has been performed. So, the firm endures some costs which should be transferred to appraisal costs as other appraisal costs. 4.1.3. The Internal Failure Costs These costs are occurred from the poor quality products which are detected before delivering the products to the consumers. These costs can be summarised as (1) Salvage, (2) Reproduction and Repairs, (3) Re-inspection, (4) Corrective actions. 4.1.3.1. Salvage Costs These costs are occurred by Salvage and waste product costs. Salvage and waste product means the defective product cannot be repaired or reproduced, it should definitely be scrapped. These costs are calculated by the labour costs and loss of row materials. This calculation is made by quality assurance department with the help of accounting department. 58 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4.1.3.2. Reproduction and Repairs Costs It consists of row materials, labour and other production costs which the firm have to endure reproduction and repairs of the defective products in order to make the defective products convenient to deliver the consumers. 4.1.3.3. Re-inspection Costs The reproduced and repaired products are inspected again. The goal of this inspection is to check whether these products conform to the specifications or not. Those re-inspection activities cause some costs. These costs are transferred to the internal failure costs as reinspection costs. 4.1.3.4. Corrective Actions According to the customers’ compliant, the firm make some corrective activities for nonconformities before selling the products out. The customers’ complaints are collected and reported. According to this report the firm makes corrective activities in order not to receive same complaints about the products. So these activities cause some costs and these costs are added to internal failure costs as corrective actions costs. 4.1.4. The External Failure Costs These costs are raised after selling the product to the customers. These costs are endured after delivering the products to the consumers by failures, defects, and incompleteness of the sold products. The external failure costs arise from the actions that are (1) Products Returns (Returned Products), (2) Transportation Damage, (3) Warranty Costs 4.1.4.1. Products Returns The products returns consist of the defects of the products which cannot repair in the related warranty period or displayed goods and tester products. In addition, the products which are call backed because of manufacturing defects are also added to this cost. All returned products costs have been calculated by marketing department and reported to quality assurance department. These all costs are sum up and transferred to the external failure costs. 4.1.4.2. Transportation Damage The damage of products which takes place during the transportation of the customers is element of activities for this cost. The damaged products in transportation are transferred to reproduction or repair department, and repost these products to the customers. Those all reproduction, repair and repost or re-transportation costs are added to external failure costs as transportation damage costs. 4.1.4.3. Warranty Costs Every cost made in guaranty period and under warranty activities are added to this cost. The company gives a 2 year warranty. After warranty period, the firm also gives repair services to its customers. 4.1. Reporting Quality Costs in the Firm The firm concentrates on reporting activities for internal and external failure costs. In the firm, production assembly and circuit breaker tests department reports salvages and reproductions to the quality assurance department monthly. External failure costs are pursued by the quality assurance department. 59 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4.2. Analysis of Quality Costs in the Firm Under this topic, it will be tried to demonstrate the firm data about quality costs. According to this data some ratio analysis will be done. This analysis will be shown with the help of tables and some charts. The figure below shows the company’s sales and production amount in Turkish Liras (here after TL). The sales and production amount have been given for three years. In addition, the figure contents of total quality costs in the firm for three years. Years Data 2008 2009 2010 Total Sales (TL) 629.053.415 695.866.750 786.859.486 Total Production Costs (TL) 515.326.274 563.708.245 643.590.468 10.028.516 11.712.822 12.642.655 Total Quality Costs (TL) The Ratio of Quality Costs to Sales 1,59% 1,68% 1,61% The Ratio of QC to Production Costs 1,95% 2,08% 1.96% Table 12: Some Ratios and Ratio Components in the Firm According to the firm information, the ratios of total quality costs to total sales have been calculated for given three years. And the ratios of total quality costs to total production costs have been also calculated. In the aspect of the information in the section two, these calculations have been performed as follows. In 2008, the company’s total sales are 629.053.415 TL. In the same year, total quality costs are 10.028.516 TL. So the ratio of total quality costs to sales can be found out as follows; 10.028.516 = 1,59% 629.053.415 It can be conclude that the amount of total quality costs is only 1.59% of the total sales in 2008. 10.028.516 = 1,95% 515.326.274 The calculation above demonstrates that the ratio of total quality costs to total sales is about 1.95%. For the years of 2009 and 2010 have been calculated by the same way and written down in the figure above. This ratio is not too much for an early stage of quality costs analysis applier’s company. In other word, the firm analyses it is quality costs not long ago, so the rates is in the acceptable amount. Besides this ratios can be reduced for more efficient quality costs system. 4.3. The Analysis of Quality Costs as Its Components According to the data which gathering from the firm authorised persons, the quality costs will be given as the classification of quality costs components for 2010. According to this classification, quality costs component will be given as costs items for each one. With the 60 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo help of this costs items, the percentage amount of each costs item will be also calculated and given for the year. Components of Quality Costs Costs (TL) Prevention Costs 1.782.614,36 14,1 Quality Planning 518.348,86 4,1 75.855,93 0,6 The Training of Quality 202.282,48 1,6 Inspection and Tests Instructions 113.783,90 0,9 Supplier Quality Planning 214.925,14 1,7 Preventive Maintenances 480.420,89 3,8 Other Prevention Costs 176.997,17 1,4 Appraisal Costs 5.031.776,69 39,8 Inspection and tests of purchased materials 1.036.697,71 8.2 101.141,24 0,8 1.150.481,61 9,1 581.562,13 4,6 1.984.896,84 15,7 Other appraisal costs 176.997,17 1,4 Internal Failure Costs 4.450.214,56 35,2 Salvage 2.225.107,28 17,6 Reproduction and Repairs 1.656.187,81 13,1 480.420,89 3,8 88.498,59 0,7 1.378.049,40 10,9 998.769,75 7,9 50.570,62 0,4 Warranty Costs 328.709,03 2,6 Total Quality Costs 12.642.655 100,0 Quality Circle Control, maintenance and calibration of measurement instruments Process inspection and tests Consumable materials for laboratory and tests Products inspection and tests Re-inspection Corrective actions External Failure Costs Products Returns Transportation Damage Table 4: Total Quality Costs as Each Cost Items for the Components in the year of 2010 61 Ratio (%) �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo In the figure 2010, the non-conformance costs are under the half of the total quality costs. This demonstrates that the firm is going in the right way. The company pays more importance for conformance costs day by day, so the non-conformance costs decreases naturally. These changes will benefit the company in more ways than one. In the firm, the figures below are reported to the managers in order to monitoring quality costs activates by management. The importance of quality costs increases day by day. Chart 1: the pie chart of Prevention Costs items The chart shows the percentage amount of costs items in prevention costs. The quality planning costs and preventive maintenance costs are about 56% of prevention costs. Quality circle in the firm has too small amount of prevention costs, because this group is voluntary group and the group is not working actively. Chart 2: the pie chart of Appraisal Costs items The chart 2 represents appraisal costs components’ percentage. The production inspection and test has huge amount among these costs. In production inspection and test activities, the company performed control in it is finished products, because of the type of produced products. The finished products have been checked due to prevent consumers’ safety of life and wealth. Chart 3: The pie chart of failure costs items In the chart 3, the failure costs – internal and external failure costs – are drawn as percentage of all costs items in the failure costs. Salvage and reproduction costs have a portion of approximately 66% in the failure costs. 62 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The next table is shown the total quality costs as categorization groups. As it is mentioned before, the quality costs have two components which are conformance and non-conformance costs. And these components costs are given in the chart. In addition, conformance costs are divided into two cost elements that are prevention costs and appraisal costs. The amounts of these costs are also given yearly in the table. The conformance costs are increasing amount the given years. It rose up two times from the amount of 2008 to 2010 amount. It is good for a company to increase its prevention activities in order not confront defects after selling the products out. Besides, the amount of prevention costs in conformance costs is too small. The firm should be concentrate more on prevention costs. Quality Costs 2008 Conformance Costs - Prevention Costs - Appraisal Costs Non-Conformance Costs - Internal Failure Costs - External Failure Costs Total Quality Costs 2009 2010 3.098.811,45 5.177.067,33 6.814.391,05 631.796,51 1.147.856,56 1.782.614,36 2.467.014,94 4.029.210,77 5.031.776,69 6.929.704,56 6.535.754,67 5.828.263,96 4.693.345,49 4.767.118,55 4.450.214,56 2.236.359,07 1.768.636,12 1.378.049,40 10.028.516 11.712.822 12.642.655 Table 5: the amount of quality costs in classification through the years On the other hand, in the table above, the non-conformance costs have been shown in two parts which are internal and external failure costs. The company has endured too much internal failure costs. It should be increase its preventive activities and decrease the internal failure costs. When it comes to external failure costs, the firm is going in a right way, because for each given years the amount of external failure costs going down. The chart below monitors the percentage amount of the quality costs’ categories for the years. The numbers are percentage of the each category for the year. Each colour in the chart represents the years of 2008, 2009, and 2010. Internal Failure Costs External Failure Costs % Chart 4: The Percentage Amount of The Quality Costs’ Categories Through The Years With the help of chart 4, it can be seen that conformance costs – prevention and appraisal costs – are increasing for each year. Additionally, non-conformance costs – internal and external failure costs – are decreasing for each year. It also shows that the huge amounts of total quality costs are occurred after production stage. The internal failure costs are the biggest costs in the total quality costs for every year. This 63 External Failure Costs �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo situation represents that the defects are realized after the stage of production. The chart 4 demonstrates the movements of the quality costs categorizations through the years. In general, the movements of quality costs components are in a right way, even though the non-conformance costs are more than conformance costs. In the chart, it can be also seen that the amount of prevention costs is under the 15% of the total quality costs which means the firm do not pay enough importance for the prevention activities. Although, the trend of external failure costs is declining, the external failure costs have too much portion of total quality costs. Having too much external failure costs are bring more costs than the firm can measure. TL Chart 6: the Trends of Quality Costs’ Categorization in TL In the chart 6, it is again shown the trend of quality costs components. The chart 5 shows the trends as percentage value, the chart 6 shows this trends as Turkish Liras amounts. The inferences of the chart 6 are similar to the chart 5. 4.4. The Application Results and Proposals The quality costs activities in the X Electric Inc. are concentrated in non-conformance activities. In other word, the firm highly interested in internal and external costs. So, nonconformance costs are monthly reported to management. Besides, the firm do not give required importance for prevention and appraisal costs’ measurement. Therefore, conformance costs are just reported yearly period, even though the firm is giving the more importance to conformance costs than before. On the other hand, while paying the non-conformance costs more importance than the conformance costs in the firm, the company endure more costs than it can measure. That is to say, the firm can bear the quality costs more than in numbers; there may be a non-visual negative effect on the firm. For instance, the firm may confront the loss of customers, bad brand recognition and poor employee motivation and so on. In addition, the efficient quality system causes to benefit the company in more ways than one. It decreases the nonconformance costs and increases profitability of the firm. The firm would have sustainable competitive advantage in the market. Yearly reporting total quality costs is not efficient for making decisions on these costs. The measurement of prevention and appraisal costs is not making appropriately. The allocation key is generally labour costs which is not suitable for measurement of every costs item in the quality costs. 64 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The firm should establish an efficient quality costs system and determine this system specification for effective measurement and reporting of quality costs. By having reliable and sufficient data in quality costing, company can reduce its non-conformance costs. And it causes to reduce total quality costs and increase profitability of the firm. The firm should prepare instructions and procedures in order to make measurement more efficient especially in prevention and appraisal costs. Every person in the firm should be informed about these instructions and procedures. On the other hand, only the quality assurance department is responsible for quality costing in the firm. As it is mentioned in the previous parts, quality is not a person or a department job; it should be responsibility of every person and every department in the firm. The quality costs reports should be prepared and reported monthly. The accounting department should determine more suitable allocation keys for the measurement of quality costs and journalese these costs according to this measurement. 5. CONCLUSION The Total Quality Management improvements in the Turkey make the Turkish firms to recognize the importance of quality costs. In the industrialised country, the analysis of quality costs has been performed since 1960s. In our country, the quality costs analysis and reporting has gained importance for last decades. Actually, Turkish Firm are forced to analyse these costs, because of highly competitive market. In the market, there are lots of Competitor Companies and many products of these companies. The quality of product becomes higher day by day. While increasing in quality, products are produced more cheaply. In that kind of market, if a firm want to stay alive, it has to increase its products’ quality and decrease its total costs. In order to make it real, the firms need to analyse their quality costs. Producing poor quality products have not only negative effects on the firms, but also have bad effects on the consumers and country economy. The world has limited natural resources, so every person in the world should use these resources carefully and should not be wasted these resources. In other words, the country economy would be badly affected by producing not qualified or poor qualified produce, because the poor quality products causes salvage, reproduction or repairmen of the products, so it means wasting workforce, energy and time in the economy. Thus, the natural recourses should be used effectively. Previously, companies thought that quality control was just a waste of time. It badly affected on the productivity in production. But this thought has been changed in course of time. By effective quality control system, company can reduce the salvage, loss of labour hours and so on, which is decrease the productivity level. On the other hand, by concentrating on conformance quality would cause performing the production control easily, which means decreasing evitable costs and producing products without defects. In addition, by reducing hitch in production process, the idle time in the production would be also reduced. This also causes increasing productivity. Producing high qualified product brings increase in sales, and the profitability would increase. The goal of analysing quality by costs is recognizing quality and control activities’ costs. After determination of costs for non-quality, the firms can compare the costs of quality with the costs of non-quality. Additionally, by determining costs of quality, the company can monitor the each quality activities and its costs. This causes to recognize the activities which bring non-qualified products. 65 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Improving quality activities is intended to reduce the costs of failure. In other words, concentrating on prevention and appraisal activities brings low failure costs in the firms. By increasing conformance activities, the firms need to endure some costs. These costs are not more than non-conformance costs in the firm, because the non-conformance costs may most probably contains hidden costs. These hidden costs can be more harmful than visual or countable costs. The current accounting system in Turkey is not suitable for quality costing and reporting. It is not designed for reporting quality costs separately in details. So, while establishing quality costs system in a firm, the companies should arrange their account plan in order to record quality costs properly and fully. By measuring and reporting quality costs, the managers can recognize that there is a huge amount of costs which they do not take into consideration while making managerial decisions. They can realise that the non-quality issues increase the evitable costs by too much. The quality costs are separate concept from production costs. Some quality cost items consist of non-evitable costs in order to provide quality in produced products. Some quality costs are occurred by lack of quality and they can be reduced by effective quality costs system. The computable costs for quality are less than non-computable costs. For example, to calculate the costs of the reputation loss which is occurred from non-qualified products is not easy. So these hidden costs should be also considered. In the short run, investing in preventing activities can increase total quality costs, but in the long run, these investments will cause decreasing in failure costs. So the firm will reduce its evitable costs in the long run. To summarise, after defining and classifying quality costs, it should be measured and reported to the management. These reports should be as costs items and functional entity of the organization. This way of reporting provide that in which department these costs come from and which cost items have the big portion of these costs and so on. These provide to take precaution about these costs and poor qualified products. The quality costs should be also reported as at least for three years in order to see trend of the quality costs. So the managers can compare the quality costs by yearly and departmentally. On the other hand, some ratios should be used for this analysis, for example ratio analysis. The firms can take the rate of total quality costs to sales or total production to see the ratio of total quality costs. And also these ratios can give more significance information to the managers. There is a direct relationship between the quality costs and operating capacity. In the high production capacity, the quality costs realised in high amount, besides in the low production capacity the quality costs are occurred less. So, the differentiation on quality costs are occurred from the production capacity or investment amount in quality activities can be easily find out. In the globalizing world, the firms should take into consideration of the quality of products. No company can survive in a highly competitive market with its low quality products. And the amounts of quality costs never excess the amount of poor quality costs. REFERENCES Altunışık, R., Coşkun, R., Bayraktaroğlu, S. & Yıldırım, E., 2005. Sosyal Bilimlerde Araştırma Yöntemleri: SPSS Uygulamalı. Sakarya: Sakarya Kitapevi. 66 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo AYDEMİR, S., 1999. Kalite Maliyet Muhasebesi: Arçelik A.Ş. Örneği. Sakarya: Sakarya Üniversitesi, Sosyal Bilimler Enstitüsü. Campanella, J., 1999. Principles of quality costs: principles, implementation and use. s.l.:American Society for Quality press. Garvin, D. A., 1984. Product quality: An important strategic weapon. Business Horizons, May–June , p. 40–43. Hansen, D. R. & Mowen, M. M., 2006. Cost Management: Accounting and Control. s.l.:Thomson South-Western. Hoyer, R. W. & Hoyer, B. B. Y., 2001. What Is Quality. Quality Progress, July, pp. 53-62. Jaju, S. B. & Lakhe, R. R., 2009. Quality costs in a manufacturing industry: a gateway for improvement. International Journal of Applied Engineering Research , pp. 945-954. Juran, J. M. & Godfrey, A. B., 1998. Juran's Quality Handbook. New York: McGraw-Hill Professional. Kaner, C., 1996. Quality cost analysis: Benefits and risks. Software QA, p. 23. Karabınar, S., 1998. Kalite Maliyetlerinin Maliyet Muhasebesindeki yeri ve Bir Öneri. İstanbul: Marmara Üniversitesi Sosyal Bilimler Enstitüsü. Kırlıoğlu, H., 1998. Kalite Maliyetleri Muhasebesi. s.l.:Değişim Yayınları. Low, S. P. & Yeo, H. K. C., 1998. A construction quality costs quantifying system for the building industry. International Journal of Quality & Reliability Management, pp. 329 - 349. Montgomery, D. C., 2005. Introduction to Statistical Quality Control. New York: John Wiley & Sons. Oliver, J. & Qu, W., 1999. Cost of quality reporting: Some Australian evidence. International Journal of Applied Quality Management, pp. 233-250. Ömürgönülşen, M., 2009. A research on the measurement of quality costs in the Turkish food manufacturing industry. Total Quality Management & Business Excellence, May, pp. 547562. Reid, R. D. & Sanders, N. R., 2004. Operations Management: An Integrated Approach. s.l.:John Wiley High Education. Rodchua, S., 2006. Factors, Measures, and Problems of Quality Costs Program Implementationin the Manufacturing Environment. Journal of Industrial Technology, OctDec, pp. 510-515. Sarıkaya, N., 2003. Toplam Kalite Yönetimi. Sakarya: Sakarya Kitabevi. 67 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Seokjin, K. & Behnam, N., 2008. The Dynamics of Quality Costs in Continuous Improvement. International Journal of Quality & Reliability Management, pp. 842-859. Sipahi, B. & Yıldırım, H., 2004. Kalite Maliyetleri Muhasebesi ve İstatistiksel Analizi. İstanbul: Türkmen Kitapevi. Şimşek, M., 2001. Toplam Kalite Yönetimi. İstanbul: Alfa Yayınları. Tsai, W. -. H., 1998. Quality Cost Measurement Under Activity-Based Costing. International Journal of Quality and Reliability Management, pp. 719-752. Vahevanidis, N. M., Petropouolos, G., Avakumovic, J. & Mourlas, A., 2009. Cost Of Quality Models And Their Implementation In Manufacturing Firms. International Journal for Quality Research, pp. 27-36. Evaluation of Financial Performance of Banking Sector: Evidence from Bosnia and Herzegovina, Croatia, Serbia and Slovenia Nađa Dreca International University of Sarajevo,Faculty of Business and Administration 71000, Sarajevo, Bosnia and Herzegovina E-mails: nadja.dreca@students.ius.edu.ba, nadja_n88@hotmail.com Abstract The objective of this study is to compare the financial performance of the banking sector in some ex- Yu countries: Bosnia and Herzegovina, Croatia, Slovenia and Serbia for period from 2005 to 2010. Banking sector of Yugoslavia was strong but because of the weakness and the collapse all these characteristics disappeared. The financial performance of banks is study on the basis of some selected financial variables and ratios, such as return on asset, return on equity, capital adequacy ratio, share of non-performing loans in total loans, participation of deposits, assets and loans in Gross Domestic Product of the country. All of the indicators improved in period until the beginning of the global crisis, but with the first signs of crisis the conditions in entire economy worsen as well as the situation in the banking sector. Data show that banking system of these countries suffers from problems largely influenced by its huge debt to IMF, political situation, financial crisis, internal situation and other political factors. The authorities of banking system in selected countries took some measures in order to improve financial position and to slowdown the negative consequences of the global crisis. Keywords: Banks, ROA, ROE, Non-performing loans, Reforms, Crisis 1. INTRODUCTION The banking sector is considered to be an important source of financing for most businesses. Increase in the financial performance leads to more improved functions and activities of any 68 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1279 Title A name given to the resource Quality Costs Accounting And A Firm Application Author Author Hilmi , Kirlioğlu Abstract A summary of the resource. Contemporarily, the competition in the markets has thoroughly heated up. Many companies try to decrease their costs in order to survive in this cruel market. In this respects, the quality costs gain importance in all over the world and in Turkey, too. Companies need to gaining profit for sustainability. And also gaining profit is one and first of companies’ two basic goals. In order to achieve this first goal and to gain sustainability, companies have to provide customers’ and potential costumers’ needs and demand as well as they do, and also they should gain sustainable competitive advantage by improving its technology, and its product quality. With the globalization and non-boarding trading, the markets turned into cruel competitive place. In that kind of markets, unfortunately, using low pricing model is not enough for selling goods and services. Companies also need to provide high quality products. In other words, being successful in the global markets, the companies need to have not only low price products, but also high quality products. As it is stated above, in order to gain sustainable competitive advantages in the market, companies need to act two actions at the same time. Firstly, improving the quality of products and services causes gaining sustainable competitive advantages in the market. Secondly, decreasing production costs by improving efficiency in order to promoting the product, brand or company in the market.In addition, the quality cost system utilizes the production efficiency. Therefore, the quality cost system should be established in every company in which it can be applicable. Keywords: Total Quality Management, Quality Costs, Managerial Accounting. Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance https://omeka.ibu.edu.ba/files/original/5094bb4b75472342a64b086fe5091919.pdf 28d9b66f18af0291bf5966b11fb54da9 PDF Text Text Heavy metal induced gene expression in Brassicaceae Lamija Subasic, Haris Gavranovic, Imer Muhovic and Abdul Razaque Memon* Department of Genetics and Bioengineering, Faculty of Engineering and Information Technologies, International Burch University, 71000 Sarajevo, Bosnia and Herzegovina E-mail: armemon@ibu.edu.com Abstract Plants require at least 14 mineral elements for their nutrition. These include the macronutrients nitrogen (N), phosphorus (P), potassium (K), calcium (Ca), magnesium (Mg) and sulphur (S) and the micronutrients boron (B), chlorine (Cl), iron (Fe), manganese (Mn), copper (Cu), zinc (Zn), nickel (Ni) and molybdenum (Mo). These are generally obtained from the soil. Crop production is often limited by low bioavailability of essential mineral elements and/or the presence of excessive concentrations of potentially toxic heavy metals, such as Fe, Mn, Cu, Cr, Cd, Pb, Zn and Al in the soil solution. In the past few years, responses of plants to heavy metals have received increasing attention. On one hand due to industrial activities, toxic heavy metals such as Cd, Zn, Cu, Cr, Pb have been released into the biosphere and represent a widespread environmental pollution. High concentrations of heavy metals in the soil can inhibit plant growth and reduce crop yields, which can affect sustainable development severely. In order to study the molecular response of plants to heavy metals, the gene expression data of model crop plants especially in Brassicaceae family were analyzed by searching several databases available online. In the first part of this work the publicly available online resources for these plants from websites such as http://www.ncbi.nih.gov, http://www.tigr.org, http://www.brassica.info, and related sites were searched to collect nucleotide sequences that encode heavy metal ATPases and transporter protein homologues. The second part of this work focuses on the expression of these genes in plants grown at different concentrations of Cu, Zn, and Cd. Real time PCR (RT-PCR) experiments will be carried out to analyze the expression of these genes in roots and shoots of B. nigra and B. juncea treated with different concentrations of metals. Keywords: Arabidopsis thaliana, Brassicaceae, phylogenetic tree, Metal ATPases, phytoremediation 1.INTRODUCTION Phytoremediation uses green plants to clean up toxic amount of inorganic and organic pollutants from the environment. The rapid industrialization and urbanization of many developed and recently developing countries (for example China, India, Brazil etc) have increased heavy metal and organic pollution in the environment (Memon and Schroder, 2009). Hyperaccumulation as a phenomenon has attracted growing attention in the past decade. Exploiting hyperaccumulating plant species, and identifying metal accumulation 205 �genes is currently focal point for phytoremediation or phytomining (Ozturk et al 2012). Among limited number of plant species 400 are classified as heavy accumulator plants (Baker et al., 2000). Among them Arabidopsis hallari, Thlaspi, Brassica nigra, and Brassica juncea have been most studied (Memon and Schroder, 2009). Those plant species have the ability to accumulate extremely high amounts of heavy metals in their leaves (Brown et al., 1995). The plants absorb contaminants through the root system and store them in the root biomass and/or transport them up into the stems and/or leaves. A living plant may continue to absorb contaminants until it is harvested. After harvest, a lower level of the contaminant will remain in the soil, so the growth/harvest cycle must usually be repeated through several crops to achieve a significant cleanup. After the process, the cleaned soil can support other vegetation. Heavy metals that have been identified in the polluted environment include As, Cu, Cd, Pb, Cr, Ni, Hg and Zn. Different sources of heavy metals are listed in Table 1. Table 1. Different sources of heavy metal contamination. Heavy metals Sources As preservatives, animal feed plants, herbicides, volcanoes, mining and smelting Cu biosolids Cd fossil fuel burning, phosphate fertilizers, sewage sludge Semiconductors, petroleum refining, wood additives, coal power, Electroplating industry, smelting and refining, mining Geogenic sources , anthropogenic activitie,s metal smelting and refining, application of Cr tanneries Electroplating industry, sludge, solid waste, Pb of leaded gasoline, wastes enriched in Pb, paints Mining and smelting of metalliferous ores, burning municipal sewage, industrial Hg industries producing caustic Volcano eruptions, forest fire, emissions from soda, coal, peat and wood burning 206 �Se fuels, glass manufacturing (e.g., varnish, pigment formulation) Coal mining, oil refining, combustion of fossil industry, chemical synthesis Ni bursting and gas exchange soils and geological materials Volcanic eruptions, land fill, forest fire, bubble in ocean, weathering of Zn mining, biosolids Electroplating industry, smelting and refining, Different approaches have been used or developed to mitigate the heavy metal polluted soils. The metal ion accumulated in the aerial parts that can be removed to dispose or burnt to recover metals. The results indicate that many Brasssica sp. such as B. juncea L., B. juncea L. Czern, B. napus L.and B. rapa L. exhibited moderately enhanced Zn and Cd accumulation. According to Brooks (1998) and Baker (2000) they were also found to be most effective in removing Zn from the contaminated soils. The plant species that have been identified for remediation of soil include either high biomass plants such as willow (Landberg and Greger, 1996) or those that have low biomass but high hyperaccumulating characteristics such as Thlaspi and Arabidopsis species (Memon et al 2000, Memon et al. 2008). The main objective of this study is to identify genes responsible for hyperaccumulation of heavy metals such as Zn, Cu and Cd in Brassicaceae family species, namely Brassica , do comparative phyletic analysis among different species and characterize metal induced gene expression. The present study aims at finding homologues of heavy metal ATPases among species mentioned that might possess same specific functional similarities. Moreover, this study aids to resolve many problems of soil pollution and enhance soil clean-up methods by using fast growing and high biomass accumulator plant species. The main components of this study are: i) retrieval of heavy metal ATPase nucleotide sequences from Brassicaceae family species, H.sapiens and S.cerevisiae by searching through all sequence databases; ii) multiple alignment of found sequences, iii) phyletical analysis of heavy metal ATPases genes, where the main gene source was A.thaliana, compared with Brassicaceae, H.sapiens and S.cerevisiae and other related organisms with the objective of finding motifs with high or identical functional similarity. 2. Materials and Methods 2.1.Retrieval of sequences In this study DNA sequences were retrieved from websites as a molecular evidence to classify organisms. Several publicly available online data resources were used including: http://arabidopsis.org/ (TIGR, The Institute for Genomic Research); http://www.ncbi.nlm.nih.gov/ (GenBank); http://plantgdb.org/ (PGD, Plant Genome Database), http://srs.ebi.ac.uk (EMBL-EBI). Homo sapiens and yeast sequences were acquired from http://www.ncbi.nlm.nih.gov/. and http://www.yeastgenome.org/ (SGD, Saccharomyces Genome Database), respectively. All the sequences were downloaded in FASTA format and all databases were screened for heavy metal ATPase gene homologues by 207 �employing the BLAST algorithm (Blastn and discontiguous megablast for nucleotide databases). Discontiguous megablast as a version of megablast is used to compare slightly diverged sequences, especially sequences from different organisms, which have alignments with low degree of identity. For the initial screening, Arabidopsis, human and yeast heavy metal ATPases nucleotide sequences were used and every database scanned for the E-value of sequences of <10-7. Phylogenetic tree was constructed from DNA sequences by using Java applet JalView. Firstly, genes responsible for hyperaccumulation of heavy metals, heavy metal ATPases were collected from www.arabidopsis.org. The sequence databases were also searched using keywords for heavy metal ATPases. In total seven of the gene nucleotide sequences from Arabidopsis thaliana were taken and put for further analyses. The identified genes from these databanks are: HMA1 (Heavy metal ATPase 1); copper-exporting ATPase, HMA2 (Heavy metal ATPase 2); cadmium-transporting ATPase, HMA3 (Heavy metal ATPase 3); ATPase, coupled to transmembrane movement of ions, phosphorylative mechanism, HMA4 (Heavy metal ATPase 4); cadmium-transporting ATPase, HMA5 (HEAVY METAL ATPASE 5); ATPase, coupled to transmembrane movement of ions, phosphorylative mechanism, PAA1 (metal-transporting P-type ATPase 1), PAA1 (metaltransporting P-type ATPase 1); ATPase, coupled to transmembrane movement of ions, phosphorylative mechanism. Subsequently, based on those identified genes sequences, nucleotide sequences for other organisms such as Brassica, Saccharomyces cerevisiae and human were collected from http://srs.ebi.ac.uk and http://www.ncbi.nlm.nih.gov/ for the purpose of finding homologue sequences. After the set of related sequences were obtained, we proceeded further by using BLAST tool form NCBI website to find regions of local similarity between sequences. 2.2. Multiple alignment and phylogenetic tree construction A total of 134 heavy metal ATPase sequences were multiply aligned by utilizing ClustalW program in order to construct phylogenetic tree. Construction of phylogenetic tree is the most convenient method to represent the significant relation among obtained sequences. The purpose of our research is to study the sequences of gene family where all sequences share the same common ancestor. Thus by implementing phylogenetic trees we will ensure that the heavy metal accumulator genes are orthologous to another well-characterized gene in another species. Two genes that are orthologous often have the same exact function (have similar roles) in the two different organisms they come from. In order to construct phylogenetic tree sequences of genes need to be aligned. In multiple sequence alignment the nucleotide sequences are being overlapped so similar features end up in the same column. The idea behind a multiple alignment is to put nucleotides or amino acids in the same column because they are very similar according to some criterion. There are four major criteria to build a multiple alignment of sequences that all have different properties. These four criteria are as follows: structural, evolutionary, functional and sequence similarity. While the first three criteria have a clear biological meaning, the fourth one does not. When the sequences are closely related, their structural, evolutionary, and functional similarities are equivalent to sequence similarity. The criterion observed in this research is that the sequences of different metal induced genes have functional and evolutionary similarities among species. Our hypothesis is that the functionally related sequences of the genes from different species or organisms will be having conserved pattern or motif which will be possibly related to hyperaccumulation of heavy metals. 208 �3.Results and Discussion 3.1.Heavy metal ATPase homologues Three phylogenetic trees were constructed for collected heavy metal ATPase nucleotide sequences. In Fig.1. a total of 27 gene nucleotide sequences were obtained from 2 different organism: 24 plants and 3 human species after scanning of major sequence databases. The majority of these sequences belonged to Arabidopsis thaliana. Mainly mRNA sequences were taken for multiple alignment and construction of phylogenetic tree by using Neigbour Joining method in Jalview software. Fig.1. Linear dendrogram presenting a phylogenetic tree for metal accumulating genes. In one study a total of 35 homologues gene nucleotide sequences were obtained from 19 different organisms: 2 plants (8 Arabidopsis thaliana and 3 Oryza sativa Japonica Group), 2 Mus Musculus, 2 Rattus norvegicus, Caenoharbditis elegans, 2 Canis lupus familiaris, Bos taurus, Gallus gallus, Saccharomyces cerevisiae, Macaca mulatta, Anopheles gambiae pest, Kluyveromyces lactis, Pan troglodytes, Homo sapiens, Schizosaccharomyces pombe, Danio rerio, Neurospora crassa, Magnaporthe oryzae and Drosophila melanogaster after scanning of major sequence databases. The majority of heavy metal ATPase sequences belonged to Arabidopsis thaliana. Mainly mRNA sequences were taken for multiple alignment and construction of phylogenetic tree by using Neigbour Joining method in Jalview software. 209 �In another study a total of 72 homologues gene nucleotide sequences were obtained from 14 different organisms: plants (Arabidopsis thaliana, Hordeum vulgare, Glycine max, Oryza sativa japonica, Oryza sativa indica, Noccaea caerulescens, Thlaspi caerulescens, Triticum aestivum, Sorghum bicolor, Populus trichocarpa, Medicago truncatula, Picea glauca, Solanum tuberosum, Hirchfeldia incana, Brassica juncea, Brassica napus ,Vitis vinifera, Zea mays, Thellungiella halophila, Physcomitrella patens ssp patens, Selaginella moellendorffii, Solanum lycopersicum, Brachypodium distachyum, Sedum alfredii, Ricinus communis ), Pan troglodytes, Pongo abelii, Macaca mulatta, Rattus norvegicus, Equus caballus, Bos taurus, Sparus aurata, Drosophila melanogaster, Drosophila erecta, Chlamydomonas reindhartii, Trichoplax adhaerens, Candida albicans, Saccharomyces cerevisiae and Homo sapiens after scanning of major sequence databases. The majority of heavy metal ATPase sequences belonged to Arabidopsis thaliana (8), and Medicago truncatula (6). Mainly mRNA sequences were taken for multiple alignment and construction of phylogenetic tree by using Neigbour Joining method in Jalview software. From the comparative analyses of phylogenetic trees orthologous heavy metal ATPase genes were identified from model crop plants in Brassicaceae family, such as Arabidopsis thaliana, Brassica juncea, Brassica napus, Noccaea caerulescens and Thlaspi caerulescens. Phylogenetic tree is comprised of: leaves or OTUs (Operational Taxonomic Units), nodes which represent an ancestral OUT, clade (a group of OTUs that includes several sequences and their common ancestor nodes), branch which defines the relation between a clade or an OTU and the rest of the tree and root which is the common ancestor of all the OTUs. Phylogenetic trees were built with distance methods by grouping OTUs according to overall similarity. These phylogenetic trees are unscaled, where branch length does not have any special meaning in terms of evolutionary time. On the other hand it indicates of orthologous heavy metal ATPase genes across different species. Conclusion Great efforts have been made in the last two decades to reduce pollution sources and remedy the polluted soil and water resources. Phytoremediation, being more cost-effective and fewer side effects than physical and chemical approaches, has gained increasing popularity in both academic and practical circles. Recent advances in biotechnology will play a promising role in the development of new hyperaccumulators by identifying a specific metal genes and transferring metal hyperaccumulating genes from low biomass wild species to the higher biomass producing cultivated species in the times to come. This can play a significant role in the extraction of heavy metals from the polluted soils and aid sustainable environmental development. Phytoextraction as a way of phytoremediation is environmental friendly, and causes no harm to soil quality. Moreover, it is less expensive than any other clean-up process. It takes more time than other clean-up techniques, but on the other hand its benefits certainly outweigh the time-consuming process, since it is related to plants. Although, investigations are needed to develop new methods for effective recovery of metals from the hyperaccumulator plant biomass. REFERENCES Memon, A.R. and Schröder, P. 2008. Implication of metal accumulation mechanisms to phytoremediation. Environ. Sci. Pol. Res. (ESPR). 16: 162-175. Ozturk, M., Memon, A. R. , Gucel, S. , and Dogan, Y. 2012. Brassicas in Turkey and their Possible Role in the Phytoremediation of Degraded Habitats. Springer-Verlag. 210 �Memon et al 2008. Metal accumulation in crops- Human health issues, In : Trace ElementsNutritional benefits, environmental contamination, and health implications, Ed. M. N. V. Prasad, John Wiley & Sons pp. 81-97 Memon, A. R., Aktoprakligıl, D., Özdemir, A., and Vertii, A. 2000. Gene expression of heavy metal stress protein in plants. Turkish J. Botany 25, 111-121 Memon, A. R., Yildizhann Y. and Keskin, B. C. Phytoremedıatıon of heavy metals from contamınated areas of Turkey. 4th European Bioremediation Conference, Sept 3-6, Chania, Crete, Greece, ID04 pp1-4, ISBN 978-960-8475-12-0. Baker, A.J.M., McGrath, S.P., Reeves, R.D., Smith, J.C.A. (2000). Metal Hyperaccumulator Plants: A Review of the Ecology and Physiology of a Biological Resource for Phytoremediation of Metal-Polluted Soils.In: Terry, N., Banuelos, G. Eds. Phytoremediation of Contaminated Soils and Water. Boca Raton, Florida, USA. Brown, S.L., Chaney, R.L., Scott Angle, J. (1995). Zinc and cadmium uptake by hyperaccumulator thlaspi-caerulescens grown in nutrient solution. Soil Sci. Soc. Am. J., 59: 125-133. Claverie,J.M. Cedric Notredame (2007). Bioinformatics For Dummies (2nd). Indianapolis, Indiana: Wiley Publishing, Inc. Landberg, T., Greger, M. (1996). Differences in uptake and tolerance to heavy metals in Salix from unpolluted and polluted areas. Applied Geochem., 11(1-2):175-180. Brooks, R.R., 1998. Plants that Hyperaccumulate Heavy Metals. CAN International, Wallington, p.379. Engineering of microalgae for biofuel production Recep Vatansever1, Sanija Cavar1,2, and Abdul Razaque Memon1 1Department of Genetics and Bioengineering, Faculty of Engineering and Information Technologies, International Burch University, 71000 Sarajevo 2Department of Chemistry, University of Sarajevo, Sarajevo, Bosnia and herzegovina Abstract Increasing of the world population along with the economic wealth deepens the energy crises every day. Hence we need to find the new alternative energy sources that will satisfy the energy demand and concomitantly deliver no emission to the environment. In this particular situation, plants offer us a highly efficient and effective solutions. However use of higher plants for such purposes can cause several problems such as food competition, water shortage, arable land, fertilizer etc. Algae are tiny biological factories that use photosynthesis to transform carbon dioxide and sunlight into energy so efficiently that they can double their weight several times a day. As part of the photosynthesis process algae 211 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1246 Title A name given to the resource Molecular cloning and characterization of ARF1 and COPI coat proteins from Medicago truncatula cv. Jemalong Author Author Holger , Densow Abstract A summary of the resource. The integrity of the Golgi apparatus in both plant and mammalian cells is dependent upon a coordinated flow of COPII (coatomer protein) coated vesicles in anterograde (forward) and of COPI coated vesicles in retrograde (backward) direction. Although a fair amount of work on vesicular trafficking has been published in Arabidopsis thaliana not much information is available related to the secretory pathway in other higher plants. In the present study we have used Medicago truncatula, a model plant for legume species as for symbiotic and pathogenic interactions, to identify Arf1 and COPI components of the early secretory pathway. Their localisation and interaction with the Golgi apparatus in the root cells has been identified. EST databases of the M. truncatula were screened and putative homologues for all seven coatomer proteins and MtArf1 were identified. SDS-PAGE electrophoresis and immunoblotting studies showed very high expression of Arf1 in nodules and nodulated roots compared to nonnodulated ones. Our results show that MtArf111::GFP, Mtz-COP1::GFP and Mtz COP2::GFP were localized on mobile Golgi structures, streaming along the ER network and were sensitive to brefeldin A, indicating their potential association with Golgi stacks. This study demonstrates an important role of Arf1 and COP1 proteins in early secretory pathway in root cells of M. truncatula. Keywords: Medicago truncatula, Arf1, COPI, Golgi, Vesicular trafficking, Root Nodules Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),Q Science (General) https://omeka.ibu.edu.ba/files/original/0101eccaa33831020e37410b379d71b0.pdf f75edefc93cbc1fadcb9ee03469949af PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Boiled Veal Bulgur Pilaf Bulgur Pilaf Orange Strawberry Pears Grilled Chicken Oven Meatballs Yoghurt Soap Bulgur Pilaf Green runner beans Green beans with meat Pears Rice Pudding Macaroni timbale 19 Apricot Tomato Soap Chick peas with meat Whitefish Stuffed Eggplant Rice Pilaf Maccaroni with cheese Maccaroni with cheese Pearch Curly Salad 20 Watermelon Awareness-rasing Sustainable Business and Corporate Social Responsibility Among Small and Medium-sized Enterprises Huseyin Onlem Ersoz1,Ramazan Kilic2 1Adnan Menderes University, Karacasu Memnune Inci Vocational School, Aydin, Turkey 2Adnan Menderes University, Faculty of Economics and Administrative Sciences, Aydin, Turkey E-mails: hoersoz@adu.edu.tr, rkilic@adu.edu.tr Abstract Sustainable business and corporate social responsibility (CSR) activities have been raising in Turkey since 2001 Economic Crisis. Corporate social responsibility (CSR), is an approach developed with the concept of sustainable development. CSR is a kind of self-regulation management and organization model. CSR means that a company's business model should be socially responsible and environmentally sustainable. It refers to responsible corporate action beyond legal requirements; CSR manifests itself throughout the value chain, in a company’s treatment of its employees and in its dealings with the relevant stakeholders. Especially, most large-sized companies in Turkey at least have played some roles on sustainable development with their projects, activities or reports. Most of them have relations with the world business environment. That’s why they could find chance and had to use sustainable strategic management methods to prevent their stakeholders. But many small and 27 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo medium-sized companies (SMEs) couldn’t have realized yet the importance of sustainability and CSR because of the many reasons (financing, accounting, human resources, work places, cultures and others). SMEs give dynamism to the Turkish economy, employment and businesses providing an important contribution to sustainable development. 98% of total enterprises in Turkey ara SMEs, Community and the environment in which SMEs can make significant contributions to corporate social responsibility. Because the term responsible for the business, social and environmental issues become part of the company's activities to ensure the economic success of the company with sustainability. CSR in Turkey is not a new subject. Historical background the society has already got a culture of philanthropy by some foundations and trade guilds. The research problem was how SMEs efforts could be improved into responsible entrepreneurship by raising questions on the possible ways with a profitable and sensible manner. The research may also help the companies in our region identify further actions that they can take to strengthen their business, its reputation and performance. The research area was undertaken in Aydin. Only seven percent of companies have ISO 9000 certificate. Almost nearly SMEs don’t have certificates such as ISO 14000 and CE certificates. This situation may be the result of SMEs adequate environmental awareness. SMEs owner/managers play important roles to build workplace, environmental, marketplace and community policies. Cause they are the first policy makers on entreprises’ values. Besides they think that these are unnecessary expenditures for themselves and the society or they have limited ability to apply. Keywords: Sustainable Business, Corporate Social Responsibility, Small and Medium-Sized Enterprises, Business Policies, Company Values 1. INTRODUCTION In the present days, business environment, financial, political, and social factors all have impacts and subsequent affects on entreprises. Society of environment are becoming consistently more aware of the importance of the environment, social and ethical issues. As a result, greater awareness of Corporate Social Responsibility (CSR) within the business world has been developing. Corporate social responsibility (CSR), is an approach developed with the concept of sustainable development. CSR is a kind of self-regulation management and organization model. The Committee for Economic Development commented about CSR as: “Today it is clear that the terms of the contract between society and business are, in fact, changing in substantial and important ways. Business is being asked to assume broader responsibilities to society than ever before and to serve a wider range of human values. Business enterprises, in effect, are being asked to contribute more to the quality of life than just supplying goods and services (Acar and Oksuz 2008). 28 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo CSR means that a company's business model should be socially responsible and environmentally sustainable. It refers to responsible corporate action beyond legal requirements. CSR manifests itself throughout the value chain, in a company’s treatment of its employees and in its dealings with the relevant stakeholders. Especially, most large-sized companies in Turkey at least have played some roles on sustainable development with their projects, activities or reports. CSR can benefit all stakeholders, including employees, manufacturers, and consumers, while addressing their social and environmental concerns. Therefore businesses of all sizes, including SMEs, have felt the impact of the above within subsequent changing business environments. Many of the focus studies and works in Corporate Social Responsibility (CSR) have been about big-sized enterprises so far, such as the Corporate Responsibility Index or the Global Reporting Initiative. The very phrase “CSR” implies a certain size of enterprise. This is because big businesses have more abilities and tools than SMEs. They are more international which means facing more pressures than SMEs. But in Europe many entreprises are SMEs which means the society will probably expect CSR from SMEs now or later, whether business shape is large or not. At last entreprises which need to improve their quality, have to adopt a more social management style, sustainable business. It is necessary therefore to study the concept CSR in the SME context to understand and know the CSR key success factors that will enable SMEs to compete effectively and succeed in the long run. So this search focus on the SMEs roles at CSR. This research paper has been organized in the following order. Subsequent to the introduction, SMEs is briefly explained, followed by the short perspective of CSR. This is followed by the methodology of the study and its results are provided. Finally, the conclusions and recommendations for future research are given for the benefit of the field. 2. SMALL AND MEDIUM-SIZED ENTERPRISES SMEs are important for country economies. Although big companies have strong sources to reach local communities, SMEs are more closer and better relations. 2.1. The Definition of SMEs Over 90% of enterprises in which both the developed and developing countries are SMEs (Aykaç et al, 2008). This means, Small and Medium-Sized Enterprises (SMEs) are playing a major role for the countries’ economical and social area growths. SMEs is a kind of business concept that used in almost all countries. But there is no global definition accepted of SMEs. 29 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Different country use various measures of size depending on total number of employees, total investment or sales turnover. That’s why the definition of SMEs varies from country to country. The definition of SMEs depends on the national economy, the level of industrialization, the market size, sector, and vary according to the method used in the production. European Commission, has got new definition since 2005 to solve this problem. Table 1: The definition of SMEs in Europe and Turkey Europe Turkey Enterprise category Employees Turnover or Balance Sheet Total Medium-sized 50-249 < 50 Million Euros or < 43 Million Euros Small 10-49 < 10 Million Euros or < 10 Million Euros Micro 0-9 < 2 Million Euros or < 2 Million Euros Medium-sized 50-249 < 25 Million TL or < 25 Million TL / 10,87 Million Euros Small 10-49 < 5 Million TL or < 5 Million TL / 2,174 Million Euros Micro 0-9 < 1 Million TL or < 1 Million TL / 0,435 Million Euros 1 Euro = 2,30 TL, February 2012 Source: European Commission (2005: 14), www.kosgeb.gov.tr 2011 Table 1 shows that, SMEs have been defined in EU, as enterprises, which employ fewer than 250 employees and which have either an annual turnover not exceeding 50 million Euros, or an annual balance sheet total not exceeding 43 million Euros. The size and diversity of SMEs in Europe is enormous. Eurostat estimates that there are about 20 million enterprises in industry and services of which more than 99% are SMEs with fewer than 250 people employed (www.ec.europa.eu 2012). In Turkey, enterprises which employ less than 250 employees, and annual net sales revenue or fiscal balance sheet is not exceeding 25 million Turkish Liras are called SMEs (www.kosgeb.gov.tr 2012). 2.2. The Importance of SMEs in Turkey Turkey is a functioning market economy. Based on IMF estimates of worldwide GDP, Turkey is the world’s 16th largest economy. Turkey’s GDP per capita has increased from approximately $1.300 to $4.000 in 2000 and exceeded $10.000 in 2011. Although this level stands at 46% of the EU average, Turkish economy could have reached 6,5% annual growth rate during 2002-2011 (http://evds.tcmb.gov.tr/cbt.html). 30 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The size of the population is close to 75 million, and it is projected to reach 84 million in 2025. Turkey has a young population. The proportion of the population under the age of 24 is 44 percent. This represents a demographic potential that can contribute to economic growth if future policies focus on improving the state of the labor market. Removing rigid labor market regulations, reducing the tax wedge, and, more importantly, enhancing human capital through education reforms are essential policies for accelerating the economic growth rate on a sustainable basis. Currently, the Turkish economy is using less than half of its workforce (Ararat 2011). Almost 98,8% of companies are SMEs in Turkey. 61,1% of workers are employed by the SMEs. The SMEs investment rate in all companies is 56,5%. Besides 37,7% of annual production of Turkish Economy is made by these companies (see Table 2). These rates indicate that SMEs have a great power on Turkish society, such as reducing unemployment, flexible production abilities, national economic and social development. Table 2: Economical Indicators of SMEs in Turkey Economical Indicators % SMEs rate in all entreprises 98,8 Employment rate 61,1 Investment rate in all entreprises 56,5 Annual production rate 37,7 Annual given bank credit rate 4 Export rate in all entreprises 8 Source: Bayat, 2011:p.569 SMEs are more closer than the large ones to the markets, have better relations with customers and employees. SMEs generate competition level higher of the sector in which they operate. Besides, the development of SMEs are considered the most efficient instrument for transition economies, which generates sustainable economic growth, employment, powerty alleviation and improvement of national economic welfare. Below are listed the most important factors for the contribution of SMEs to the market economy (Keskin and Senturk, 2010):  31 SMEs provide the strength of element of “balance” income spectrum. This balance gains importance in terms of both social and economic sides. These enterprises are the sources of new ideas and discoveries. They contribute to the industries for providing required elasticity. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo  SMEs have the opportunity to make a decision more quickly. Because they work with less expense of management and general operating, they have faster and cheaper production.  SMEs play an important role in creating private initiatives. Also they enjoy large shares in employment and training. These enterprises are the first establishments in which many qualified workers receive technical training.  SMEs constitute an effective way to expand the manufacturing and industrialization to the whole country.  SMEs are of the situation to be the manufacturer of intermediate goods and inputs of large industrial enterprises.  SMEs may be effective in increasing quality of life providing some opportunities for small investments to use labor force, raw material and financial sources that cannot be used because of social and political reasons.  SMEs possess a significant role to fulfill the function to reflect small savings and family savings directly to the investments. However, due to their structural capabilities and national economic-social policies, SMEs face many problems. In Turkey, most small businesses have capital and management problems which cause functional disorganizations (Ayik and Keskin 2011). So that SMEs have not only financial problems for investments, but also have nonqualified workers, inexperienced managers, inadequate bank credits, old technologies, standardization deficiencies, corporate management, marketing and sales problems (Aykac et al, 2008). Today businesses are struggling with a new role around the World. They need to meet the needs of their societies where they live. Organizations are being called upon to take responsibility for the ways their operations impact to societies and the natural environment. Small businesses may not know or have not ability and use the term "CSR", but their close relations with stakeholders such as employees, markets and society often will expect to trust. Many SMEs are committed to environmental, social and community responsibility is certainly clear. Much of this will not be called “CSR” by those who are doing it. Successful SMEs are regularly providing excellent goods and service. They provide employment. They engage their employees and harness their motivation and skills for the long-term success of the enterprise. They recognise the value of informing and consulting employees, and of creating participative workplaces (www.csr-in-smes.eu, 2011). 3. A SHORT HISTORICAL PERSPECTIVE ON CSR CSR seems new concept, but it has been in the academic literature since 1950’s. But it has not got a universal accepted definition yet. 3.1. The Definition Of CS 32 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo CSR is an evolving concept that currently does not have a universally accepted definition. Generally, CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society. The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development (Hohnen 2007). Another definition of CSR is “Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business (Raynard and Forstater 2002). As issues of sustainable development become more important, the question of how the business sector addresses them is also becoming an element of CSR. CSR is defined by the EU as a concept “whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” (www.csr-in-smes.eu, 2011). Here, corporate social responsibility, is an approach developed with the concept of sustainable development. CSR is a kind of self-regulation management and organization model. CSR is a kind of concept that discribes the relationship between a business and its environment. So that for CSR, any business models should be socially responsible and environmentally sustainable from their impacts. 3.2. Views on CSR Corporate Social Responsibility, has existed in name for over 70 years. In academic literature, various authors have referred to a sequence of some approaches, each including and transcending one other, showing past responses to the question to whom an organization has a responsibility (Marrewijk, 2003). It is not until Bowen’s seminal text that CSR becomes the object of significant academic interest. Bowen in 1953 defines CSR as ‘‘the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of actions which are desirable in terms of the objectives and values of our society”. (Freeman and Hasnaoui 2010). But the classical view on CSR is “the social responsibility of business is to increase its profits” by legal means (Friedman, 1970). Milton Friedman contributed to the creation of a general CSR theory by asking questions such as “Should companies take responsibility for social issues?” (Friedman, 1970). Managers are only responsible for their shareholders. Profit maximization, is the main responsibility of the business. Other thing such as socially responsible activities are a major task of governments (Arslan, 2005). Consequently, the use of organizational resources for the larger good, such as donating to charities, is detrimental to firms since it may decrease profitability or increase product prices or both (Snider et al 2003). The modern argument on CSR says that both big enterprises and SMEs are responsible to society as a whole, of which they are an integral part. They should use their resources to improve the walfare of its environment. Consistent with this argument, Carroll identified a model called “The Pyramid of CSR” (see Figure 1). 33 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Source: Branco M. C. and Rodrigues L. L, 2007 Figure 1: The Pyramid of CSR Accordingly this model, CSR has four dimensions: economic, legal, ethical. and philanthropic (Carroll, 1991). The economic component is business’s fundamental responsibility to make a profit and grow. The legal component is their duty to obey the law and to play by “the rules of the game.” The ethical component is their responsibility to respect the rights of others and to meet the obligations placed on them by society that ensure these rights. Finally, the discretionary component involves philanthropic activities that support the broader community (Snider et al 2003). All of these dimensions of responsibilities have always existed to some extent. But it has only been in recent years that ethical and philanthropic functions have taken a significant place (Carroll, 1991). In his model, each dimension of CSR can be examined in relation to the various stakeholders of organization. The modern definitions emphasize that a socially responsible company must have concerns beyond short-term profitability (Mohr, 2001). Obeying the laws is not enough to build a modern society. The modern view on CSR is defined as briefly explained by E. Freeman’s “stakeholder theory”. Stakeholders identified and categorized by their “interest, right, claim or ownership in an organization” (Snider et all 2003). A stakeholder is a part of business who can affect the organization or is affected by the activities of an organization. (Ertuğrul 2008). Stakeholder theory indicates that shareholders are not the only accountable group for the organizations but also there are another important stakeholders: customers, managers, employees, civil society, supliers, government, competitiors or investors ect. (Wood, 1990). Figure 2, shows that there are six responsibility areas. It is also shows the stakeholders groups. CSR is really about how to manage these six responsibilities. Hence, stakeholder theory provides a useful framework to evaluate corporate social responsibility through social reporting activities. 34 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Source: Palazzi M. and Starcher G. (2006: 9) Figure 2: The Six Responsibility Areas in CSR The growth of corporate social responsibility as an issue in modern society stems from a wide range of events and trends. The trends outlined below are receiving increased coverage by the media (Mamun et all 2009): Changing Expectations of Stakeholders Regarding Business Shrinking Role of Government Increased Customer Interest More Competitive Labor Markets Supply Chain Responsibility Growing Investor Pressure Demands for Increased Disclosure New and Emerging Issues 3.3. The Relationship Between Sustainability and CSR There is a growing belief that firms can and should pursue strategies that address economic, social, and environmental problems that, if unresolved, may erode the basis for businesses’ continuity. Economic sustainability is of fundamental importance to firms and is best reflected in their business models and governance choices. Social sustainability emphasizes the embedded nature of business in society. Issues such as poverty, access to medicine, access to clean water, polarization of income, and social exclusion are all related to the context in which businesses operate. Environmental sustainability considers the impact of 35 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo economic activities on natural resources, ecological balance, and global warming (Ararat et al 2011). Around the world, companies are becoming increasingly aware of the impact of their activities. They are striving to make their business decisions more sustainable by applying the principle of corporate social responsibility (CSR) within the company, in the wider environment they operate in, and in their relationship with suppliers and customers. In line with their own economic interests, businesses – small and large, domestic and international – are starting to share responsibility for the ecological and social situation in their immediate environment. Examples include the protection of human rights, drawing up and implementing employment and environmental standards and minimising corruption (Conze 2011). Hence CSR is formulated managing change at company level in a socially responsible manner. This happens when a company seeks to set the trade-offs between the requirements and the needs of the various stakeholders into a balance, which is acceptable to all parties. If companies succeed in managing change in a socially responsible manner, this will have a positive impact at the macro-economic level (European Commission 2002). The most competitive economy on the world will probably be achiving sustainable development capability by social responsible management. 3.4. Corporate Social Responsibility and SMEs The CSR concept was developed mainly by and for large multinational enterprises. Because of their lower complexity and the strong role of the owner, SMEs often manage their social impact in a more intuitive and informal way than large companies. In fact, many SMEs are already implementing socially and environmentally responsible practices without being familiar with the CSR concept or communicating their activities. These practices are often defined and understood as responsible entrepreneurship by SMEs (European Commission 2002). Social responsibility applications of SMEs are affecting by stakeholders. We can say that a stakeholder is a part of a value chain. Stakeholders press each other. Especially SMEs having relationships with international affairs can be affected by through direct supply chain, as well as the development of legislation, getting international standardization or any certifications. On the other hand, CSR offers opportunities for greater market access, cost savings, productivity and innovation to SMEs, as well as broader social benefits such as education and community development. Without the incorporation of SMEs into the global ‘social’ value chain, the aim of CSR will not be met. 4. MATERIALS AND METHODS The research problem was: How could SMEs efforts be improved into responsible entrepreneurship? We tried to find awareness level of SMEs by raising questions on the possible ways with a profitable and sensible manner. 36 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo This study used both quantitative and qualitative research methods to compare multiple forms of data and seeking convergence in the findings. A questionnaire was used to collect data. It was sent to the enrepreneur and managers of SMEs by. Face to face interviews with corporate executives were also done to seek insights on their CSR practices. The questionnaire was taken from The European Commission Directorate-General for Entreprise (www.ec.europa.eu, 2012). It consisted of four major parts (workplace, enviromental, marketplace and community policies), and 30 questions. The research results are used as data material for the analysis. The data analysis was conducted by using the SPSS program (Statistical Package for Social Science) and for evaluation and comments, the frequency analysis was used. 5. RESULTS AND DISCUSSION The number of enterprises responding to the survey is 40. The answers to the questionnaire were evaluated by means of frequency analysis. Frequency analysis of responses to the survey results are described separately below. 33 of the respondents are business owner/managers and the others are managers (general managers or unit directors). Only 3 of them are females. 72,5% of those interviewed are university graduates. Only 10% of them are over 50 ages. 70% of the entreprises are between 0-20 years old. Besides 37,5% of them are micro sized, 52,5% of them are small sized and 10% of them are medium sized entreprises. 5.1. Workplace Policies of SMEs The long-term success of enterprises and their ability as an effective entrepreneur often depend on the knowledge, skills, talent, innovative creativity and the motivation of their employees. As an enterprise grows, it will need people that it can rely on and delegate to, so that it can innovate the business. According to survey 29 of enterprises encourage their employees to develop real skills and long term carees. 10 of them have partially long-term plans. 37% of them have a process to ensure adequate steps taken against all forms of discriminitaion both in the workplace and at the time of recruitment. 35% of them have no processes and 8% of them have partially. 77,5% of the enterprises consult with employees on important issues. While 7,5% of them answered “no”, 15% of them consult partially. 21 enterprises have suitable arrangements for health, safety and walfare that provide sufficient protection for their employees. 17 of them have partially and 2 of them don’t have suitable arrangements. While 17 enterprises actively offer a good work-life balance for their employees for example, by considering flexible working hours or allowing employees to work from home, 18 of them offer partially, and 4 of them do not. 37 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 5.2. Environmental Policies of SMEs Environmental degradation is both a global and a local problem of increasing concern throughout society and therefore also among customers. Further, good environmental performance often makes financial sense. Energy efficiency, pollution prevention, waste minimisation and recycling can all result in significant cost-reductions for the enterprises. 60% of enterprises have tried at least once to reduce their energy consumption, 25% of them have tried partially and 15% of them don’t have any energy reduction plan. 22 of the enterprises have tried to minimize their waste and maximize recyling while 18 of them have tried partially or not. Only 27 of enterprises have tried to use pollution prevention procedures for example effluent discharges, noise. 26 of enterprises exactly have some procedures to prevent the natural environment. But 10 of them have partially protection procedures. 47,5% of SMEs have sustainable transport options. 42,5% of enterprises have ability saving money by reducing their environmental impacts, 30% of them have partially. 65% of enterprises on the research area consider the potential environmental impacts when developing new products and services. 7,5% of managers do not know the impacts of their activities. The number of enterprises supplying clear and accurate environmental information on products, services and activities to customers, suppliers and local community is 30, whether 5 of enterprises have partially procedures and 3 of them do not supply. We asked the enterprises whether they could think of ways in which their enterprises could use the sustainability of its products and services to gain an advantage over competitors such as recyclability of products, energy efficiency, etc. The ratio of “yes” answers is 60%, “no” is 10%, 25% is “in part”. 2,5% of the ratio is “don’t know and 2,5% is “not applicable”. 5.3. Marketplace Policies of SMEs Enterprises are basically ‘human’ organisations that rely on a web of internal and external relationships which are vital for mutual prosperity. The way in which these working relationships are managed is often vital to the success of an enterprise. Good relations with customers and suppliers bring gains for both sides. According the survey 80% of enterprises have policies to ensure honesty and quality in all their contracts, dealingd and advertising (e.g. a fair purchasing policy, provisions for consumer protection, etc). 75% of them are suppliying clear and accurate information and labelling about products and services, including its after-sales obligations. 17,5% of them supply partially. 27 of enterprises ensure timely payment of suppliers’ invocies, but 3 of them don’t ensure. 7 of them ensure partially. Only 22 of enterprises have a process to ensure effective feedback, consultation and/or dialogue with customers, suppliers and the other people they do business. Accordingly the survey 72,5% of enterprises try to register and resolve complaints 38 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo from customers, suppliers and business partners. 25% of them can register and resolve complaints partially. Besides 52,5% of SMEs have been working with other companies or other organisations to adress issues raised by responsible entrepreneurship but 15% of them don’t work with others. 5.4. Community Policies of SMEs There is a clear connection between a healthy and profitable business and the wellbeing of the community around it. Most small businesses are an integral part of their community and have an active involvement with local aspirations and activities. According to survey 35% of enterprises offer trainning opportunities to people from the local community. 30% of them can offer partially, but 30% of them don’t offer any trainning opportunities. The number of enterprises having an open dialogue with the local community on adverse, controversial or sensitive issues that involve their enterprise is only 15. 14 of them don’t have any open dialogues. Accordingly the survey whether 70% of enterprises try to purchase locally, only 4 of them don’t have local purchasing relations. 62,5% of enterprises encourage their employees to participate in local community activities such as practical help, employee time and expertise. 60% of SMEs can give regular financial support to local community activities and projects (e.g. charitable donationas or sponsorship). 20% of them can support partially, but 17,5% of them can not. 5.5. Company Values of SMEs Most small businesses already “do the right thing” or at least do a number of good things. Small and medium-sized enterprises often reflect the existing values and principles of the owner/manager. But few enterprises have put their values into a code of conduct, a statement of good business practice or even a set of simple rules articulating the company’s vision, values, responsibilities and ambitions. Accordinggly the survey nearly %85 of SMEs have clearly defined their enterprises’ values and rules of conduct. 12,5% of them partially have defined values and 2,5% of them have not defined enterprise values yet. 60% of enterprises told their values to customers, business partners, suppliers and other interested parties. 32.5% of them told partialy their values to stakeholders. Hence 60% of SMEs’ customers know the enterprises’ values and rules of conduct. Respondents explained that 85% of enterprises’ employees were aware of the enterprises values and rules of conduct because enterprises tried to train on the importance of their values and rules of conduct. 70% of enterprises train their employees, but 30% of them partially could train. 6. CONCLUSION CSR and sustainable business is not well-known concept for SMEs in Aydin. Emprical findings show that the perception of CSR is very unclear. Most enterprises heard about CSR 39 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo concept for the first time with this survey. We can say that at least we reached our aim. Hence enterprises could be noticed business responsibilities and were raised by this survey. We found that the values of the owner/manager are major importance keys when deciding on company workplace, environmental, and community policies. Educational level of managers is also important to improve responsible entreprises. But they think that these are unnecessary expenditures for themselves and the society or they have limited ability to apply. On the other hand SMEs’ employees can play important roles to reach the new concept of CSR in the future. If SMEs can give safety and healty workplace conditions, and career plans to employees will be highly motivated. That means SMEs give value them as individuals. Being responsible business is be valid unless building trust between managers, employees, customers and local community. Regardless of size or sector, all companies have some foot prints which are usually negative impacts on the environment. Negative impacts arise through the direct or indirect consumption of energy and resources, the generation of waste and pollutants and the destruction of natural habitats. Not only big enterprises but also SMEs can reduce the destruction of natural habitats. This can be done by new technologies, production procedures, sharing expriences with stakeholders, improving relationship with suppliers, customers and local communitiy or etc. All of these benefits clearly will establish the long-term sustainability and success of SMEs. REFERENCES Acar Z. and Oksuz B. (2008). Corporate Social Responsibility and Stakeholder Management: The Case of the Most Admired Companies of Turkey, International Conference on Economic and Management Perspectives Conference Proceedings, October 17-19, 2008, North Cyprus, 206-218 Ararat M, Yurtoğlu B. B, Suel E and Tura D. (2011). Sustainable Investments in Turkey 2010, International Finance Corporation, Washington Arslan, M. (2005). “İş ve Meslek Ahlakı”, Siyasal Kitabevi, Ankara, 2. Baskı Ayik Y. Z. and Keskin G. (2011). Kobilerin Genel sorunları ve Düşünülen Çözüm Önerileri Üzerine Erzurumda Bir Uygulama http://e-dergi.atauni.edu.tr/index.php/SBED/article/view/563/555 Aykaç, M, Parlak, Z, and Özdemir (2008.) Küreselleşme Sürecinde Rekabetin Artırılması ve KOBİ’ler, İstanbul Ticaret Odası Yayınları, İstanbul Awareness-raising Questionnaire / The European Commission Directorate-General for Entreprise, 40 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo http://ec.europa.eu/enterprise/policies/sustainablebusiness/files/csr/campaign/documentation/download/questionaire_en.pdf, 2011 Bayat, M. (2011) Uluslararası Ticarette Rekabet Gücü Elde Etmede Küçük ve Orta Boy İşletmelerin Rolü ve Önemi, Mustafa Kemal University Journal of Social Sciences Institute, Vol: 8, No: 16, pp. 567-575 Branco C. M. and Rodrigues L. L. (2007) Positioning Stakeholder Theory within the Debate on Corporate Social Responsibility, Electronic Journal of Business Ethics and Organization Studies, vol.12, no.1, 05-17 Caroll, A. B. (1991) “The Pyramid of Corporate Social Responsibilit: Toward The Moral Management of Organizational Stakeholders, Business Horizons, v. July-August Commission of the European Communities ( 2002) Communication From the Commission Concerning Corporate Social Responsibility: A Business Contribution to Sustainable Development, 347th final, Brussels Conze P. (2011) Corporate Responsibilty Ensures Sustainability. In: Aletter F, Von der Burg K. And Zanella I (eds), Corporate Social Responsibility In South Africa As Practiced By South African and German Companies Southern African – German Chamber of Commerce and Industry, Johannesburg Ertuğrul, F. (2008), “Paydaş Teorisi ve İşletmelerin Paydaşları İle İlişkilerinin Yönetimi”, Erciyes Üniversitesi İ.İ.B.f. Dergisi, n:11, Temmuz-Aralık, ss.199-223 European Commission (2005). The new SME definition – User guide and model declaration, Brussels. Freeman I. and Hasnaoui A. (2010) The Meaning of Corporate Social Responsibility: The Vision of Four Nations, Journal of Business Ethics, Vol:100, no:3, pp.419-443 Friedman, M. (1970) “The Social Responsibility Of Business Is To Increase Its Profits”, The New York Times Magazine, September 13 http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html Hallunovi A. (2011) Identify The Main Characteristics of SMEs The Advantages And Difficulties That SMEs, Face In Shkodra http://www.dukagjinicollege.eu/libri/arjeta_hallunovi.pdf Hohnen P. (2007) Corporate Social Responsibility: An Implementation Guide For Business, International Institute For Sustainable Development, Canada Keskin H. and Senturk C. (2010) The Importance Of Small And Medıum-Sized Enterprises (SMEs) In Economies: Swot Analyses Of The SME Sector In Turkey And Albania, Niğde Üniversitesi İİBF Dergisi, Cilt:3, Sayı:1, s.116-132 KOBİ’lerin Tanımı, Nitelikleri ve Sınıflandırılması Hakkında Yönetmelik (2012) http://www.kosgeb.gov.tr/Pages/UI/Baskanligimiz.aspx?ref=2, 41 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Mamun A. M and Ahmed U. Z. (2009) Manager’s Vision for Corporate Social Responsibility, European Journal of Scientific Research, Vol.30 No.4, pp.631-648 Marrewıjk, M.V. (2003) “Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion”, Journal of Business Ethics, Netherlands, v.44, 95-105 Mohr, L. A, Webb, D. J and Haris K. E, 2001, “Do Consumers Expect Companies to be Socially Responsible? The Impact of corporate Social Responsibility on Buying Behaior”, The Journal Consumer Affairs, Vol. 35, No. 1, 45-71 pp Palazzi M. and Starcher G. (2006) Corporate Social Responsibility And Business Success, The European Baha’i Business Forum, France Raynard P. and Forstater M. (2002) Corporate Social Responsibility: Implications for SMEs in Developing Countries, UNIDO, Vienna Snider J, Hill R. P. and Martin D. (2003) Corporate Social Responsibility in the 21st Century: A View from the World’s Most Successful Firms, Journal of Business Ethics, Kluwer Academic Publishers, Netherlands, v.48, 175-187 SMEs and The Environment in The European Union http://ec.europa.eu/enterprise/policies/sme/business-environment/files/main_report_en.pdf, 2012 Wood, D. J. (1990) “Business and Society”, Harper Collins Publishers, USA Appendixes QUESTIONNARE PART 1: Knowledges About Managers And Entreprises 1. What is your position? a. Owner b. General Director d. Deparment Director 2. e. Vice of Department Director What is your education level? a. Primary School b. High School e. Master Degree f. Doctorate 3. 42 What is your gender? a. Female b. Male c. Vice of General Director c. College f. Other d. Faculty �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4. How old are you? a. 18-29 b. 30-39 c. 40-49 d. 50-59 e. 60 or more 5. How many years have been operating your enterprise? a. 0 -5 b. 6-10 c. 11-15 d. 16-20 e. 20 or more 6. How many employees are working in your enterprise? a. 0-9 b. 10-49 c.50-249 PART 2: Workplace Policies 1. 2. 3. 4. 5. Do you encourage your employees to develop real skills and long-term careers (e.g.via a performance appraisal process, a training plan)? Is there a process to ensure adequate steps are taken against all forms of discrimination, both in the workplace and at the time of recruitment (e.g. against women, ethnic groups, disabled people, etc.)? Do you consult with employees on important issues Does your enterprise have suitable arrangements for health, safety and welfare that provide sufficient protection for your employees? Does your enterprise actively offer a good work-life balance for its employees, for example, by considering flexible working hours or allowing employees to work from home? PART 3: Environmental Policies 1. 2. 3. 4. 5. 6. 7. 8. 9. 43 Have you tried to reduce your enterprise’s environmental impact in terms of energy conservation? Have you tried to reduce your enterprise’s environmental impact in terms of waste minimisation and recycling? Have you tried to reduce your enterprise’s environmental impact in terms of pollution prevention (e.g. emissions to air and water, effluent discharges, noise)? Have you tried to reduce your enterprise’s environmental impact in terms of protection of the natural environment? Have you tried to reduce your enterprise’s environmental impact in terms of sustainable transport options? Can your enterprise save money by reducing its environmental impact (e.g. by recycling, reducing energy consumption, preventing pollution)? Do you consider the potential environmental impacts when developing new products and services (e.g. assessing energy usage, recyclability or pollution generation)? Does your enterprise supply clear and accurate environmental information on its products, services and activities to customers, suppliers, local community, etc? Can you think of ways in which your enterprise could use the sustainability of its products and services to gain an advantage over competitors (e.g. recyclability of products, energy efficiency, etc)? �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo PART 4: Marketplace Policies 1. 2. 3. 4. 5. 6. Does your company have a policy to ensure honesty and quality in all its contracts, dealings and advertising (e.g. a fair purchasing policy, provisions for consumer protection, etc)? Does your enterprise supply clear and accurate information and labelling about products and services, including its after-sales obligations? Does your business ensure timely payment of suppliers’ invoices? Does your company have a process to ensure effective feedback, consultation and/or dialogue with customers, suppliers and the other people you do business with? Does your enterprise register and resolve complaints from customers, suppliers and business partners? Does your company work together with other companies or other organisations to address issues raised by responsible entrepreneurship? PART 5: Community Policies 1. 2. 3. 4. 5. Does your company offer training opportunities to people from the local community (e.g. apprenticeships or work experience for the young or for disadvantaged groups?) Do you have an open dialogue with the local community on adverse, controversial or sensitive issues that involve your enterprise (e.g. accumulation of waste outside your premises, vehicles obstructing roads or footpaths)? Does your enterprise try to purchase locally? Are your employees encouraged to participate in local community activities (e.g. providing employee time and expertise, or other practical help)? Does your enterprise give regular financial support to local community activities and projects (e.g. charitable donations or sponsorship)? PART 6: Company Values 1. 2. 3. 4. 5. 44 Have you clearly defined your enterprise’s values and rules of conduct? Do you communicate your enterprise’s values to customers, business partners, suppliers and other interested parties (e.g. in sales presentations, marketing material or informal communication)? Are your customers aware of your enterprise’s values and rules of conduct? Are your employees aware of your enterprise’s values and rules of conduct? Do you train employees on the importance of your enterprise’s values and rules of conduct? �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 45 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1096 Title A name given to the resource Awareness-rasing Sustainable Business and Corporate Social Responsibility Among Small and Medium-sized Enterprises Author Author Huseyin, Onlem Ersoz Ramazan, Kilic Abstract A summary of the resource. Sustainable business and corporate social responsibility (CSR) activities have been raising in Turkey since 2001 Economic Crisis. Corporate social responsibility (CSR), is an approach developed with the concept of sustainable development. CSR is a kind of self-regulation management and organization model. CSR means that a company's business model should be socially responsible and environmentally sustainable. It refers to responsible corporate action beyond legal requirements; CSR manifests itself throughout the value chain, in a company’s treatment of its employees and in its dealings with the relevant stakeholders. Especially, most large-sized companies in Turkey at least have played some roles on sustainable development with their projects, activities or reports. Most of them have relations with the world business environment. That’s why they could find chance and had to use sustainable strategic management methods to prevent their stakeholders. But many small and medium-sized companies (SMEs) couldn’t have realized yet the importance of sustainability and CSR because of the many reasons (financing, accounting, human resources, work places, cultures and others). SMEs give dynamism to the Turkish economy, employment and businesses providing an important contribution to sustainable development. 98% of total enterprises in Turkey ara SMEs, Community and the environment in which SMEs can make significant contributions to corporate social responsibility. Because the term responsible for the business, social and environmental issues become part of the company's activities to ensure the economic success of the company with sustainability. CSR in Turkey is not a new subject. Historical background the society has already got a culture of philanthropy by some foundations and trade guilds. The research problem was how SMEs efforts could be improved into responsible entrepreneurship by raising questions on the possible ways with a profitable and sensible manner. The research may also help the companies in our region identify further actions that they can take to strengthen their business, its reputation and performance. The research area was undertaken in Aydin. Only seven percent of companies have ISO 9000 certificate. Almost nearly SMEs don’t have certificates such as ISO 14000 and CE certificates. This situation may be the result of SMEs adequate environmental awareness. SMEs owner/managers play important roles to build workplace, environmental, marketplace and community policies. Cause they are the first policy makers on entreprises’ values. Besides they think that these are unnecessary expenditures for themselves and the society or they have limited ability to apply. Keywords: Sustainable Business, Corporate Social Responsibility, Small and Medium-Sized Enterprises, Business Policies, Company Values Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/04a30e209db71dbc02ad3fb5f7261d6f.pdf 35dbf12ce1b11dcb1786b97e1ba1aeef PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Gregory Cannor, Robert A. Korajczyk, (1992), The Arbitrage Pricing Theory and Multifactors Models of Asset Returns. Gur Huberman, Zhenyu Wang, (2005), Arbitrage Pricing Theory. Harry Markowitz, (1952), Portfolio Selection. James L. Davis, (2001), Explaining Stock Returns: A Literature Survey. John Y. Campbell, Motohiro Yogo, (2006), Efficient Tests of Stock Return Predictability. Jonathan W. Lewellen, (2000), On the Predictability of Stock Returns: Theory and Evidence. Robert C. Merton, (1973), An Intemporal Capital Asset Pricing Model. Internet Sources www.wkipedia.org www.portfoliosolutions.com/f-11.html http://www.investopedia.com http://www.bionicturtle.com/forum/threads/p1-t1-64-arbitrage-pricing-model-apt-versuscapm.5328/ The causal relationship between energy consumption and GDP in Turkey Huseyin Kalyoncu1, Ilhan Ozturk2, Muhittin Kaplan1 1Meliksah University, Faculty of Economics and Administrative Sciences, 38010, Kayseri, Turkey. 2Cag University, Faculty of Economics and Business,33800, Mersin, Turkey. Email: hkalyoncu@meliksah.edu.tr, ilhanozturk@cag.edu.tr, mkaplan@meliksah.edu.tr Abstract This paper attempts to investigate the short-run and long-run relationship and causality between energy consumption and economic growth during 1960-2006 period for Turkey. Johansen and Juselius cointegration method and vector error correction model (VECM) have been employed to examine this issue. After finding cointegration among variables, a VECM is estimated and the Granger causality tests were carried out based on a VECM. The results have shown that there is no short-run causality in both energy consumption and GDP models. The results also confirmed that there is unidirectional long-run causality among variables of interest and the direction of long-run causality is running from per capita GDP to per capita energy consumption. As a result, conservation hypothesis which postulates unidirectional causality from economic growth to energy consumption is confirmed for Turkey. Taken together, these empirical findings involve valuable information for policy makers. Keywords: Energy consumption, Economic growth, Causality, Turkey 20 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo JEL classification: C3, O4, Q43 1. INTRODUCTION The topic of causal relationship between energy consumption and economic growth has been well-studied in the energy economics literature for both developing and developed countries. The causality relationship between energy consumption and economic growth has important policy implications. Hence, several studies have attempted to establish the relationship between energy consumption and economic growth1. A general observation from these studies is that the results have been mixed and it can be concluded that, almost all types of causality results have been reported in the literature. The directions that the causal relationship between energy consumption and economic growth has could be categorized into four testable hypothesizes within the literature. First, the “neutrality hypothesis” suggests the absence of a causal relationship between energy consumption and economic growth. Second, the “conservation hypothesis” postulates unidirectional causality from economic growth to energy consumption. Third, the “growth hypothesis” asserts unidirectional causality from energy consumption to economic growth. Fourth, the “feedback hypothesis” emphasizes the bidirectional relationship between energy consumption and economic growth in which causation runs in both directions (Squalli, 2007). There are few studies in which the energy consumption-growth nexus have been examined for Turkey. Soytas et al. (2001) found that causality is running from energy consumption to growth. However, the causality is running from economic growth to energy consumption according to the study of Lise and Van Montfort (2007). On the other hand, while bidirectional causality is confirmed in the study of Erdal et al. (2008), no causality is investigated in the studies of Altinay and Karagol (2004), and Soytas and Sari (2009). Thus, there is no consensus on the causality between energy consumption and growth for Turkey. It is not possible to conclude definitely the direction of causality between energy consumption and economic growth. However, it is known that this causality is of major importance for effective energy policy design and implementation. A country that is energy dependent will have a cautious energy policy because any negative shock on energy supply will have negative effects on economic growth. On the other hand, in an economy where energy consumption is determined by economic growth an energy conservation policy will have very little affect on economic growth (Ouedraogo and Diarra, 2010). The objective of this paper is to investigate the relationship and causality between energy consumption and economic growth in Turkey for the 1960-2006 period by using Johansen and Juselius cointegration method and vector error correction model. The results obtained in this study are dependent on the sample period, the variables used and the methodology employed. The rest of the paper is organized as follows: The next section describes the data and methodology. Section 3 presents the results from empirical analysis. Section 4 concludes the paper. 2. Methodology The relationship between energy consumption and GDP has been discussed in detail in the empirical literature. However, the results of the empirical studies provide mixed results on the existence of causality and the direction of causality. The existence of cointegration 1 See Ozturk (2010) for detailed literature survey on energy-growth nexus. 21 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo relationship between energy consumption and GDP is taken as evidence that there is close relationship between these variables. Then, the direction of causality has been investigated. In this study, we will examine the relationship between energy consumption and GDP estimating vector error correction model (VECM). The VECM representations of energy model can be written as: (1) (2) where, represent the natural logarithm of energy consumption per capita and reel GDP per capita respectively. ECT represents error-correction term and is the usual error term. The advantage of this formulation and estimation procedure is that it allows a straightforward test of the direction and the source of causality. Using the VECM, we can test the long-run and short-run causality between per capita energy consumption and GDP per capita. The existence of short-run causality meaning that the dependent variable responds only to shortterm socks can be determined by testing the null hypothesis of in equation (1) and in equation (2). To determine whether energy consumption cause economic growth /or visa vice in the long-run, we look at the coefficients on the ECT’s in equations (1) and (2). While the size of the coefficients on ECT indicates how fast deviations from long-run equilibrium are eliminated, the significance of these coefficients implies the presence of longrun causality among energy consumption and economic growth. We can also determine whether these two sources of causality are jointly significant by testing the joint hypothesis of in equation (1) and in equation (2). The rejections of the joint hypothesis imply that following a shock to the system, both these sources of causation are responsible for the re-establishment of long-run equilibrium. 3. Data and Empirical Results All data are annually and gathered from the World Development Indicators (2008), Central Bank of the Republic of Turkey (CBRT) electronic data delivery system, IMF’s International Financial Statistics (IFS) website. The series employed in this study are per capita energy consumption (lepc) and per capita real GDP (lpcgdp) and sample period is from 1960-2006 for Turkey. Table 1 provides descriptive statistics of the data used in the study. Per capita energy consumption is expressed in terms of kg of oil equivalent and obtained from the World Development Indicators (2008). The real GDP series is expressed in 1987 constant billion TL (local currency) and obtained from the Central Bank of the Republic of Turkey (CBRT) electronic data delivery system (www.tcmb.gov.tr). Per capita GDP series are obtained from dividing real GDP series by population which is taken from IMF’s International Financial Statistics website. All series are expressed in logarithms. Table 1. Descriptive Statistics of Data Variables Mean Standard deviation Median Maximum Minimum PCEC 777.2 267.6 739.0 1304.0 274.0 22 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo PCGDP Observations 1288.9 388.8 1183.4 2160.3 702.1 47 47 47 47 47 Note: PCEC stands for the per capita energy consumption (in kg oil equivalent); PCGDP is per capita GDP at 1987 constant Turkish Liras (TL). The results obtained from preliminary analysis of data and estimation of the VECM equation (1) and (2) on the causal relationship between per capita energy consumption and per capita GDP are presented in this section. It become customary to check unit root of time series before carrying out econometric analysis of the data since non-stationary regressors invalidate most of the standard empirical results. For this reason, we first establish the level of integration of the series using both the Augmented Dickey-Fuller (ADF) and the Phillips and Perron (1988) (PP) unit root test tests. After establishing that series are I(1), we can proceed to test for a long-run relationship between the series. The existence of the long-run cointegration relationship among per capita energy consumption and per capita GDP will be tested using the maximum likelihood estimation (MLE) method of Johansen and Juselius (1990). If the cointegration relationship is found, then a VECM given above will be estimated and related test of causality will be carried out. We first perform unit root tests in levels and first differences in order to determine univariate properties of the series used in this study. We, therefore, use the classical unit root tests, namely, Augmented Dickey-Fuller (ADF) (see Dickey and Fuller, 1981; Said and Dickey, 1984) and PP unit root tests (see Phillips and Perron, 1988). The number of lags in the ADF regressions is determined by using the Schwarz Information Criteria (SIC). Table 2 provides the results obtained from the ADF and the PP tests over the sample period for the levels and first differences of variables. The test results shows that while the hypothesis of a unit root in levels cannot be rejected, it was rejected in first differences at the 1% level suggesting that the variables are difference stationary, I(1) variable. This is true for both the ADF and PP test statistics. Table 2: Unit Root Test Results Variables ADF Statistics PP test Statistics Level First difference Level First difference Lepc -0.9724 -13.7671* -0.8301 -12.1625* Lpcgdp -0.3770 -7.5360* -0.3409 -7.5327* 1% Critical Value -3.5811 -3.5811 -3.5811 -3.5847 5% Critical Value -2.9266 -2.9266 -2.9266 -2.9281 10% Critical Value -2.6014 -2.6014 -2.6014 -2.6022 Note: (*) indicate 1% level of significance Having established that all variables are integrated of the same order , we proceed with the Johansen multivariate cointegration tests, which allow us to test for long run relationship among the per capita energy consumption and per capita GDP. Before undertaking 23 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo cointegration tests, let us first specify the relevant order of lags of the vector autoregression (VAR) model. In determination of the relevant order of lags used in the VAR model, we used the Hannan-Quinn (HQI) information criterion, the Schwarz Bayesian Criterion (SBC) and Akaike’s Information Criterion (AIC). Table 3 presents the results on lag specification. According to all of the lag selection criteria, the number of lags was determined as one. Table 3. Selection of Lags Number of Lags HQI criterion AIC criterion SIC criterion 1 -7.825731* -7.9163* -7.6706* 2 -7.621177 -7.7722 -7.3626 3 -7.389001 -7.6004 -7.0270 4 -7.159026 -7.4308 -6.6936 Note: * indicates lag order selected by the criterion. HQI, AIC and SIC stands for: Hannan-Quinn information criterion, Akaike information criterion and Schwarz information criterion respectively. Table 4 provides the cointegration test results obtained from the Johansen and Juselius (1990) method for the energy model. In the JJ method, two tests are used to determine the number of cointegrating vectors (r): the trace test and the maximum eigenvalue test. In the trace test, the null hypothesis is that the number of cointegrating vectors is less than or equal to r, where r is 0, 1, or 2. In each case, the null hypothesis is tested against a general alternative. In the maximum eigenvalue test, the null hypothesis r = 0 is tested against the alternative that r = 1, r = 1 against the alternative r = 2, etc. The results show that the null hypothesis of no cointegration, i.e., r=0 is rejected by both the maximum eigenvalue and the trace statistics since both of these statistics are greater than corresponding critical values. Also, the null of r=1 cannot be rejected in favor of r=2. These results confirm the conclusion that there is only one cointegrating relationship amongst the two variables. Cointegration vector normalized with per capita energy consumption is found to be 1, -0.506, and 1.099. Table 4: Johansen-Juselius Maximum Likelihood Cointegration Tests results Trace Test Null Alternative Statistic r=0 r≥1 31.1547* r≤1 r≥2 0.0122 Maximum Eigenvalue Test Critical Values Null Alternative Statistic r=0 r=1 31.1426* r≤1 r=2 0.0121 15.4947 3.8414 Critical Values 14.2646 3.8414 Notes: Asterisks (*) denotes statistical significance at 5%. r stands for the number of cointegrating vectors. 24 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo After we determined that per capita energy consumption and per capita GDP series are cointegrated, we can proceed to test causality among these variables estimating a VECM. Different from the VAR model, VECM allows us to investigate both the short-run and longrun causality as well as joint causality of both long-run and short-run causality. The results of the causality tests based on the VECM are presented in Table 5. The examination of the table shows a number of important results on the causal relationship between per capita energy consumption and per capita reel GDP. Table 5. Granger causality test Dependent Variable Sources of Causation (Independent Variable) Short-run Long-run ECT lpcgdp lepc lpcgdp lepc ( 24.923* 0.905 1.250 Joint lpcgdp and ECT) Joint ( lepc and ECT) 12.784* 0.497 0.634 Note: Asterisk (*) denotes statistical significance at 1% level of significance The coefficient on lagged GDP term in the per capita energy equation and lagged per capita energy term in GDP equation are statistically not significant event at 10% level. These imply that there is no short-run causal relationship between per capita consumption and per capita GDP. In addition, the coefficient on the error-correction term (ECT) for the per capita energy consumption is statistically significant at 1% level in which its t-value equals to -4.99 and its size is equal to -0.5633 implying that adjustment coefficients are fairly high and deviations from the long-run equilibrium are eliminated rapidly. The coefficient on the error-correction term (ECT) in the per capita GDP equation (which is equal to -0.071 with t-value of -0.71) is however statistically significant at 10% level of significance. Taken these two findings together, the results imply that per capita real GDP variable is weakly exogenous and there is unidirectional long-run causality between lepc and lpcgdp running from lpcgdp to lepc. Furthermore, while the joint hypothesis that the coefficients on the ECT and the interaction terms are jointly zero is rejected at 1% level in the per capita energy equation, the corresponding hypothesis in the per capita real GDP equation could not be rejected at 10% level. These findings provide further support for the results that there is unidirectional longrun causality between lepc and lpcgdp and the causality is running from real GDP per capita to per capita energy consumption. As a result, conservation hypothesis which postulates unidirectional causality from economic growth to energy consumption is confirmed for Turkey. Thus, energy consumption is determined by economic growth and energy conservation policy will have very little affect on economic growth in Turkey. Finally, considering the evidences provided in Table 5 together, it can be argued that there is only a long-run causality between per capita energy consumption and per capita real GDP but there is no short-run causality. 25 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4. CONCLUSION This paper attempted to investigate the causal relationship between per capita energy consumption and per capita GDP employing vector error correction model (VECM) for Turkey. After finding cointegration among variables, a VECM is estimated and the Granger causality tests were carried out based on a VECM. The results have shown that there is no short-run causality in both per capita energy and GDP models. However, the coefficient on the ECT term for per capita energy equation is negative and statistically significant implying the presence of long-run causality among variables of interest. The results also confirmed that there is unidirectional long-run causality among variables of interest and the direction of longrun causality is running from per capita GDP to per capita energy consumption since the ECT’s coefficient in the GDP equation is insignificant. This result was also confirmed by the findings obtained from the joint hypothesis that the coefficients on the ECT and the interaction terms are jointly zero. As a result, conservation hypothesis which postulates unidirectional causality from economic growth to energy consumption is confirmed for Turkey. Thus, energy conservation policy will have very little affect on economic growth. Taken together, these empirical findings involve valuable information for policy makers. It is well known that causality issue between energy consumption and GDP is of major importance for effective energy policy design and implementation. For policy purposes, the presence of long-run unidirectional causal relationship between per capita energy and per capita GDP imply that energy consumption per head will increase in parallel with the level of economic activity and hence it is very important to secure energy resources to achieve sustainable economic growth. REFERENCES Altinay, G., Karagol, E. 2004. Structural break, unit root, and the causality between energy consumption and GDP in Turkey. Energy Economics 26 (6), 985–994. Dickey, D., Fuller, W. 1981. The likelihood ratio statistics for autoregressive time series with a unit root. Econometrica 49, 1057-72. Erdal, G., Erdal, H., Esengun, K., 2008. The causality between energy consumption and economic growth in Turkey. Energy Policy 36(10), 3838–3842. Johensen, S., Juselius, K. 1990. Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics 52, 169-210. Lise, W., Van Montfort, K. 2007. Energy consumption and GDP in Turkey: is there a cointegration relationship? Energy Economics 29, 1166–1178. Ouedraogo, I.M., Diarra, M., 2010. Electricity consumption and economic growth in Burkina Faso: A cointegration analysis. Energy Economics. doi: 10.1016/j.eneco.2009.08.011 Ozturk, I., 2010. A literature survey on energy–growth nexus. Energy Policy 34(1), 340-349. Phillips, P.C.B., Perron, P. 1988. Testing for a unit root in time series regression. Biometrika 75, 335-346. Said, E.S., Dickey, D.A. 1984. Testing for unit roots in autoregressive moving average models of unknown order. Biometrika 71, 599-607. Soytas¸, U., Sari, R., Ozdemir, O., 2001. Energy consumption and GDP relation in Turkey: a cointegration and vector error correction analysis. Economies and Business in Transition: 26 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Facilitating Competitiveness and Change in the Global Environment Proceedings. Global Business and Technology Association, pp. 838–844. Available at: http://sari_r2.web.ibu.edu.tr/yayinlarim/Energy%20Soytas_Sari_Ozdemir.pdf. Soytas, U., Sari, R., 2009. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecological Economics 68(6), 1667-1675. ''Sustainable Development Projects as Opportunity for Economic Development of Bosnia and Herzegovina'' Ajdin Perčo, Erkan Ilgun International Burch University, Faculty of Economics 71000, Sarajevo, Bosnia and Herzegovina. E-mails: ajdin_tesanj@hotmail.com Abstract The global climate changes as a worldwide phenomena are on the top of the agenda of most states and international organizations. The adverse effects we currently feel and even worst things to come are stressing the need for action and firm resolution of this problem. In this sense, the need for ‘’environment friendly’’ energy is becoming top priority and renewable energy sources are in high demand. Furthermore, many countries are noticing this as a development potential and are investing in this sector. One of these countries is Bosnia and Herzegovina with its unlimited natural resources including wind, water etc. This paper will analyze ongoing and planed projects in the area of renewable energy and economic benefits Bosnia and Herzegovina will experience from it. Furthermore, after the adoption of Kyoto Protocol and creation of state agency Bosnia and Herzegovina is now eligible to apply for CDM (Clean Development Projects). These projects are financed by developed countries and are to be implemented in developing countries. It goes without saying that this is enormous opportunity for Bosnian companies and agencies to apply for these projects and bring foreign investments that will boost domestic economy. Besides this, the journey of Bosnia and Herzegovina towards European Union is requiring various laws to be adopted and implemented. One of these laws are rules and regulations related to the various aspects of climate changes and ways on how to combat climate changes. Financial incentives that European Union is providing to ‘’green energy’’ companies and renewable energy sources are additional motivation for Bosnia and Herzegovina to develop this are furthermore. Thereby in this paper I will address the current issue of climate changes and the need for renewable energy sources. Special focus will be on Bosnia and Herzegovina and the opportunities for economic development available through investing and working on ‘’green energy’’ and renewable energy projects. I will analyze current projects and future planned projects and their impact on economic development of Bosnia and Herzegovina. The focus of the research will be on various documents, projects and analysis currently available for this purpose. The main finding is that Bosnia and Herzegovina is truly a country with great potential for investments in renewable energy projects and the research paper will provide abundance of arguments for this statement. 27 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1309 Title A name given to the resource The causal relationship between energy consumption and GDP in Turkey Author Author Huseyin , Kalyoncu Abstract A summary of the resource. This paper attempts to investigate the short-run and long-run relationship and causality between energy consumption and economic growth during 1960-2006 period for Turkey. Johansen and Juselius cointegration method and vector error correction model (VECM) have been employed to examine this issue. After finding cointegration among variables, a VECM is estimated and the Granger causality tests were carried out based on a VECM. The results have shown that there is no short-run causality in both energy consumption and GDP models. The results also confirmed that there is unidirectional long-run causality among variables of interest and the direction of long-run causality is running from per capita GDP to per capita energy consumption. As a result, conservation hypothesis which postulates unidirectional causality from economic growth to energy consumption is confirmed for Turkey. Taken together, these empirical findings involve valuable information for policy makers. Keywords: Energy consumption, Economic growth, Causality, Turkey JEL classification: C3, O4, Q43 Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance https://omeka.ibu.edu.ba/files/original/794ad90f218407851b3c8bf00d9f3c0b.pdf dcb5657aeca84a558cae00e79157c166 PDF Text Text GIS Integration And Evolution Into The Albanian System Education And Market Hysenaj, M 1, Barjami, R. 2 1University of Shkodër, Faculty of Social Sciences, Department of Geography, Shkodër, Albania 2University of Durrës, Faculty of Economic Sciences, Department of Economy, Durrës, Albania E –mails: medjonhysenaj@hotmail.com, rezartabarjami@hotmail.com Abstract This paper offers a general overview of GIS integration as a curricula and technology in the Albanian Education System. Basically it presents the evolution history of this technology, the development environment and the efforts of a closer approach to the state and private institutions. A detailed analysis will be performed between the growing market needs in Albania for GIS utilities and the handicap due to the lack of experts in geospatial technology. Results of a questionnaire survey in the university areas will be presented, where students expressed their approach to GIS technology. The need to build a complete chain of GIS curricula beginning from secondary school level up to graduate and master programms is necessary to be accomplished. Many problematic fields in Albania like flood management, population census, transport, urbanization, pollution, turism, illegal constructions, professional orientation, etc which are subjects of topic interest in many universitary courses require the use of GIS utilities. In this article it is discussed the position of GIS in the university system and the major efforts departments must carry out in increasing interaction between each other followed by a substantial intervention of the proper government institutions to the benefit of GIS development. “Albania in the age of internet” is the latest reform the government is implementing, with the scope of informing young people mainly in rural areas to develop ICT infrastructure basically in public schools and state offices, which will have a powerful impact in GIS developing technology in Albania. Keywords: Gis, education, university, technology, department, curricula 1.INTRODUCTION The role of higher education is to assist students in becoming effective thinkers with the knowledge and skills that will lead them toward becoming meaningful contributors to society [9]. Today, more and more schools are including GIS in their curricula to help their students 380 �gain valuable background knowledge and skills which they need to face global challenges. Three are the main reasons GIS has known a rapid development in Albania especially in the last years; education, internet and the growing market needs for geospatial data. For each of these categories we are going to present a full picture containing their weak and strong points. Meanwhile other countries had a faster approach to GIS technology, in Albania we found the first signs of GIS usage about eighteen years ago. The first institution that decided to embrace the implementation of a GIS system was the Science Geographic Academy of Albania in 1994, followed by the department of Geography near the University of Tirana in 1999 as a single course part of the undergraduate program. Even though at a slow pace GIS profile has evolved since then. Nowadays GIS is integrated as a single course in the undergraduate program in the Universities of Shkodra and Gjirokastra in the departments of Geography, Architecture and Urban Planning, Geodesy, Computer Sciences and Geology departments in the university of Tirana, but it still remains part of the undergraduate program. Once again the department of Geography in Tirana advanced forward by integrating GIS subject as part of a graduate program at the Proffessional Master level. But we have to ask ourself: Is that enough? How come that besides the great potential this technology affords, the vast usage in some of the crucial sectors governments dispose, the known advantages in the education field in enforcing group collaboration, increasing students creatitvity and interactivity, offering methodologies in gathering, analyzing and outputting data, coming to concrete results and conclusions, building complex reports and diagrams in a short time period, helping decision-making and understanding situations, enlarging human knowledge in an upper level, institutions in Albania are still doubtful in approaching this technology. Today more than ever Albania is facing specific circumstances that require GIS implementation in finding solutions and also helping decision-making. 2.GIS Education in Albania Geographic Information Systems in higher education provide an integrated solution to assist faculties and students with their educational goals. The advance of GIS has opened up millions of employment opportunities. More than 3,000 colleges and universities have developed excellent courses and certificate and degree programs in GIS [10]. GIS has a vast extent starting from government level down to municipality or commune. In the state universities of Albania GIS is introduced only as a single general course called Geographical Information Systems, including this way a compressed program that many times results to be inadequate to be acquired by students. The main reason of this phenomenon is the fact that GIS is developed only at a single level in the Albanian Education Institutions which is the 381 �state university. The lack of the subject development at the secondary school level is the primary reason of such a handicap. The major problem is the lack of geospatial information. In Albania only few institutions have operational GIS databases. We are facing the fact that mostly of geographic data is owned by private agencies for their personal needs, using inconsistent data which is mostly not updated. Inadequate development of geospatial technology is also closely connected with the evolution of computer science. In 2009, as reported in Figure 1, among 9478 students graduated in public universities, only 171 belonged to computer science profile [5]. Figure 1: Computer Science attendance toward (compared) other fields Still, it remains determinant the increasing role the government is playing through substantial reforms which aim to develop internet utilities in a large scale environment in Albania. The results are optimistic, during the last two years in the department of Informatic in the University of Tirana the number of students applying for computer science increased from 70 to 500 students. Departments can and should integrate into their annual programs GIS course. The stimulation point can be succeeded by orienting GIS utilities into the current problematic situations. Departments can find it easier te embrace geospatial technology as a solution possibility to their barriers. Biology department can benefit from GIS by studying the degradation process the lake of Shkoder is facing day after day, accompanied by radical changes in vegetation and animal life. Geography department can better approach analysis to flood management in the districts of Shkoder and Lezha. Inundations have become endemic to the region, causing huge economic and social damages [8]. On the other side transport problems, pollution, illegal construction, minerary, deforestation, urbanization, population census are only a few of the many topics that can use GIS as an analytical tool in their specific scientific discipline by the respective departments in the Albanian Universities. Dealing with geospatial data is strictly connected with terrain practice. This way we can develop students concept and knowledge about GIS structure and give a sense to their theoretical conceptions. Unfortunately we have not reached this stage, which remarks us 382 �(specialists of the field) the essential task of digitizing the Albanian territory with updated geospatial information [1]. First of all this process needs the government enrollment which must be the primary support in fulfilling this mission basically by covering finanacial, logistic and technical aspect. Second it is important the collaboration between universities and private agencies offering their field experts. Actually laboratory practices are limited up to data manipulation and not data creation. Which means that we do not have the proper conditions to accomplish a full map process including data collection, data processing and output. Another problematic situation students have to face is the lack of teaching materials. Actually there are only a few books translated into Albanian language that address topics connected to GIS. These books contain basic GIS principles, technical and management issues, remote sensing, digital mapping. A set of surveys, as shown in Figure 2 and 3, involving 1000 students were made. The outcome of this surveys intended to define the relation between their approach toward GIS as a concept and GIS utilities. Figure 2: Results of approach toward Web Pages based on GIS Software The results were very interesting. In the first survey students were asked to mention three of their most used web sites. The top five were ranked. Interestingly “Google Map” is among these web sites. Which means that students are looking forward to interact with dynamic maps and not just navigate in the internet. Also these students where asked about their knowledge of the term GIS. From the results we see that 87% of them didn’t know what GIS meant, 11% were familiar to the concept and only 2% of them had the chance to use GIS utilities. This is a meaningful contrast to the fact that students use GIS applications like Google Map, Google Earth, etc but are not aware of the concept of dynamic maps. 383 �Figure 3: GIS integration into the University Environment According to statistics it results that among many annual conferences that take place in Albania none of them refers to Geographic Information Systems as a primary field or topic to relay on. This induce the necessity of paying greater attention by the departments in introducing step by step GIS as a modern and undisputed technology. Gradually it is neccesary to start from several national conferences followed by international ones. Also another issue is the fact that students prefer to avoid GIS profile subjects as a possible theme during their master thesis (either professional or scientific) defending. So far no such thesis has been deposited near the departments archive. This is another delicate point which requires the intervention of the Ministry of Education (MASH). 3.GIS Exploitation Environment The Albanian population and Housing census held in October 2011 after ten years from the last one (2001) is another determinant factor in evolving geospatial technology. The overall objective of the project is to contribute to the strengthening of the Albanian statistical system. In Albania the need for a census is perhaps greater than anywhere else, and the extracted information will be of great importance to many departments subjects like geography, statistic, history, engineering, politic, etc. It will have an immediate effect on policies, but it will also provide material for further profound studies. GIS is the perfect platform to hold, manage and analyze all the data, also to produce important diagrams and reports reflecting the geographical distribution of the population in Albania in the recent years. According to statistics it is thought that during January 2011 Albanian finally passed from a rural to urban country. There is also an important evolution in fertility, since on average families nowdays have fewer children than before. The profound changes in the health system also have had its effects on the age distribution. The outcome of the census will answer many important questions on various issues. This way GIS turns out to be the perfect tool that will finally integrate these data into dynamic maps which with allow us not only make parallelisms 384 �between periods but also produce better results in comparison to the previous used softwares like Excel, etc. After flood inundation in Shkoder during 2010, 2011 from the World Bank has been granted a fund of €50.000 for the construction of the laboratory of researches for natural hazards management which will be administrated by the department of Geography in the University of Shkoder. The scope of the laboratory is intended not only for research, acquisition, integration, management, analysis and presentation of spatial data but also to provide for the students suitable conditions for developing their theoretical and practical background on advanced GIS technologies. This is the first project to be initiated under the survey of an academic institution for an important issue such as flood rather than any government unit. This trend aims to be a future incentive for other departments to create a parallel operating level system with those supervised by the ministery. On the other hand it puts in evidence the need for re-training teachers to integrate their concepts and technology into the spatial decision process. 4.GIS Market in Albania In Albania, as shown in Figure 4, there are 38 private universities and 11 state universities which make a total of 49 universities for a population of 3.2 million. According to statistics [5] for the last 10 years more than 65 thousand students graduated but only 16 thousand could get employed. This category tend to manage mainly through small private business activities in a competitive environment which requires high qualification and effective performance in retreiving valuable information from the sorrounding area, save traces of where customers or other competitive businesses are distributed, plan a marketing campaign, optimize sales territory, etc. Due to this situation GIS course turns out to be a sustainable support to their background knowledges which will lead them to a successful performance. GIS allows interactivity, querying, makes us understand better and evaluate the data by creating graphical presentation through information derived from databases [1]. The economic crisis that has affected the world in recent years has made it possible for many organizations to restructure their operating practices. Many of these businesses are aware of finding new ways to develop their activities, primarily through internal sources. Now is the time to invest in geographic information systems, a solution that has helped many organizations to overcome their operational challenges and increase profits. 385 �Figure 4: Private University development (2003-2011) Source: INSTAT According to statistics only in private universities we find 229 curriculas included into different levels of programs like Bachelor, Master of Science or Proffesional Master. The contrast in this scenario is that during the last five years the number of private universities in Albania has almost decuplicated but none of them offers a GIS course. Many of the Albanian private universities have close connections with homologue Europian Universities including student professional exchange, mutual experience exchange, revealing a clear tendency in strictly approaching their way of management and administration of the study process. Despite everything it is clearly visible their policy consists in avoiding geoscience subjects. Regardless their vision they stand as business institutions which try to find the best products to offer to the market. Being the first to understand the major market needs, private institutions insist in neglecting GIS potential in the Albanian mart. They focus on social and economic curriculas which actually are easier to integrate and adopt rather than hazard to involve students into a course that still suffers from government indifference in launching this “product” on the market and at the same time simulate private companies in embracing the idea of GIS position. This scenario reflects their pessimistic point of view according to GIS technology. Their choice not to introduce GIS into their curricula makes us believe that although GIS usage in Albania has evolved and has found more space in the Albanian market than before, private university boards are still doubtful of its real capabilities and potential. 386 �Up to now Albanian market has been handled from a range of people that have been a kind of “forced-adopted” experts in environment conditions who suffered from the lack of real geoinformatic experts. That’s why very often geospatial tasks have been performed from geographers who had little informatic knowledge or vice-versa from technic informaticians who held the responsibility to manipulate and manage geographic information, producing a range of non-professional results. Nowadays the market in Albania is eager in finding new human resources specialised in geospatial information management which can help them solve many important issues getting away from simple techniques used lately. The Digital Albania program is one of the many future projects that require GIS experts. State institutions like the prefecture, municipality, commune, private organizations and many other NPO’s are more than ever aware about the great importance of dynamic maping and satellite imageries, followed by the integration of these concepts and technology into the spatial decision making processes in the country. Especially last years Albanian institutions faced a vigorous interaction with Europian agencies. Many funds have been granted with the scope of developing research projects towards problematics affecting Albania. Many of these projects need accurate data of the territory mainly geospatial information. This leads to an increasing demand for dynamic maps and as a result of GIS utilities. 5.Internet Evolution The evolution of GIS in Albanian has been strictly connected to the evolution of Internet. The number of Internet users is an important indicator because it reflects the spread of information technology in one place, and information exchange globally [1]. Actually Albanian government is following a strong policy named “Albania in the age of the internet”, which aims to push Albania among the countries with the highest internet usage in Europe. This has caused an immediate affect not only in the extend of internet distribution but also in laboratory equipments. Internet conditions as speed, availability, price and professionalism had a great improvement. Also almost all secondary schools have been equipped with new laboratories. This has caused a closer approach to the internet as far as the students are concerned, and online softwares like “Google Earth”, “Google Map”, or Esri applications which only a couple of years ago were unknown for many people, now have turned familiar, easy to use and manage. 387 �The World Economic Forum (WEF) has published a global report according to which Albania has improved its global ranking of The Networked Readiness Index 2012 by 19 places within a year positioning itself in the 68-th place gaining the right ta be part among the ten most improved countries in the NRI. This index has been calculated based on four primary sub-indexes which are: the regulatory-politic for the information technology, improvement of digital infrastructure; management of e-skills and services; using information technology by the population, biznes or government units; social and economic impact. Technology primary sub-index sectors (Comparative level 2011-2012) Rank Increase Political and regulatory environment for the information technology, infrastructure Management of e-skills and services 13 24 Using information technology by the population, biznes or government units 17 Social and economic impact of the technology 18 Figure 5: Technology profile sectors, increase position, (2011-2012) Source: World Economic Forum: Albania The Internet and Communication Technology sector is rapidly expanding in Albania because it is both a stand-alone sector as well as a cross-cutting enabling technology for other industries [11]. Basically we have the neccesary tools to aim at developing GIS image in the market and institutional levels. Another element of minor impact in the development of GIS technology is the integration of GPS systems through a law recently approved in Albania by which the custom duties for cars has been removed. This way the percentage of imported cars produced recent years has increased rapidly, most of these cars have GPS systems included. 6.CONCLUSIONS Due to many indicative factors in the past geospatial technology missed the evolution backbone in Albania. The integration process walked through small steps which didn’t show to be determinant. The set of surveys show that the environment is ready for approaching this technology. Conditions are already mature, the increasing role the government is playing through substantial reforms toward internet extension, the vast expansion of educative institutions like private universities followed by the growing market needs for geospatial data and experts, creates the perfect circumstances for a sustainable GIS development. On the other hand the primary role in the integration process must be played by public universities. A series of steps need to be taken, beginning from a deeper interest from MASH in giving the right priority by increasing universities funds in building modern GIS laboratory, which is the backbone to start every GIS project in the future. By doing this universities have the obligation to increase collaboration between each other for the benefit of 388 �GIS development. It is necessary to build a continuos chain of GIS curriculum programs starting from secondary school, followed by several courses during undergraduate and especially graduate programs, ending with a closer approach of the students side during their thesis defending. To achieve a full education process a final step must be taken, including these students in training programms near GIS departments in countries with more experience in the field. Only by accomplishing this cicle we will be able to set the knowledge of these students into a higher level and make them able to build the future platform of Albanian GIS experts. REFERENCES Hysenaj, M., Geographical Information Systems, Shkoder, Albania, 2011. Johansson, T., GIS in Teacher Education – Facilitating GIS Applications in Secondary School Geography, 2010, pp. 66-67. Tempus, Final Report: Higher Education in Albania, 2010, pp. 23-27. Open Data Albania, January 15, 2012, http://open.data.al. Institute of Statistics Albania, January 23, 2012, http://www.instat.gov.al/. Cabuk A., Ayday, C., GIS Education in Turkey, 2004, pp. 90-91. Kerski J., Developments in Technologies and Methods in GIS In Education, 2008, pp. 35-38. Nikolli, P., Idrizi, B., Geodetic and Cartographic Education in Albania, 2007, pp. 72-75. Esri, GIS in Education: http://www.eagle.co.nz/GIS/Training/GIS-in-Education/. Education and Science: http://www.gis.com/content/education-and-science. http://www.rritjealbania.com 389 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1188 Title A name given to the resource GIS Integration And Evolution Into The Albanian System Education And Market Author Author Hysenaj, Abstract A summary of the resource. This paper offers a general overview of GIS integration as a curricula and technology in the Albanian Education System. Basically it presents the evolution history of this technology, the development environment and the efforts of a closer approach to the state and private institutions. A detailed analysis will be performed between the growing market needs in Albania for GIS utilities and the handicap due to the lack of experts in geospatial technology. Results of a questionnaire survey in the university areas will be presented, where students expressed their approach to GIS technology. The need to build a complete chain of GIS curricula beginning from secondary school level up to graduate and master programms is necessary to be accomplished. Many problematic fields in Albania like flood management, population census, transport, urbanization, pollution, turism, illegal constructions, professional orientation, etc which are subjects of topic interest in many universitary courses require the use of GIS utilities. In this article it is discussed the position of GIS in the university system and the major efforts departments must carry out in increasing interaction between each other followed by a substantial intervention of the proper government institutions to the benefit of GIS development. “Albania in the age of internet” is the latest reform the government is implementing, with the scope of informing young people mainly in rural areas to develop ICT infrastructure basically in public schools and state offices, which will have a powerful impact in GIS developing technology in Albania. Keywords: Gis, education, university, technology, department, curricula Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/ba82f3cdd7fd96bd111c6cdab2387c2b.pdf 1bf525c214696b015ce4c8966eb158cb PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo USAL Alparslan and Osman Avşar Kurgun, (2003), Turizm İşletmelerinde Maliyet Analizleri, Detay Yayıncılık, 2. Baskı, Ankara. UYGUR Selma Meydan, (2007), Turizm Pazarlaması, Nobel Yayın, 1.Basım, Ankara. YAMİN Shahid, FelixMavonda, Gunasekaran, (1997) A study of competitivestrategy, organisationalinnovationandorganisationalperformanceamongAustralianmanufacturingcompa nies, Int. J. ProductionEconomics" 52, 161 172 YILDIRIM Kemal, Aysu AKALIN, Kubulay ÇAĞATAY, (2008), Otel Yatak Odalarının İç Mekân Tasarımının Kullanıcıların Algı-Davranışsal Performansı Üzerine- Etkisi,Politeknik Dergisi, Cilt:11 Sayı: 2 s.175-185. The Historical Dynamics Of Modernizm: A Critical Perspective Hüsamettin İnaç1,Selami Erdoğan2 1 Political Sciences and International Relations, Dumlupinar University, Faculty of Economics and Administrative Sciences, Turkey 2Public Administration Department, Dumlupinar University, Faculty of Economics and Administrative Sciences, Turkey Abstract In recent decades, the modernism and modern socio-political analysis has been subjected to criticism in many respects. The ideas of the global, post-modern and post-industrial societies attempted to legimitize themselves over the criticism of the modern approach towards the economic, social, political and philosophical parameters of modern version. Due to the fact that the institutions, models, matrixes pertaining with the modern realm faded away one after the other, challenging and confrontation with modernizm was popularized. Nevertheless, many critical series of analysis remained as deficient, abortive and defective studies because many researchers had not adequate information and awareness about the dynamics of the modernism which was shaping the main character of modernism. Yet modernism just as the other movements of thought was directly relevant, related and bound to the time and space which produce them. In the light of this understanding, we attempted to elaborate the main historical dymanics and the socio-political ground which the modernizm had been created. We hope that this study demonstrates the intrinsic and essential trajectory which the 418 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo modernism followed within the dark labyrinth of history in order to meet the expectations of alternative models of societies as an harbinger. Keywords: Modernism, modernisation, modern fallacy, social change, individualism, Eurocentrism, colonialism, rationalism The notion modern primarily has been used the first time in history in 5th century handwritings of St Augustine as refering the new law, order and approaches by implying the distinction between the paganism and Christianity. In historical approach, we encounter the understanding of interruption, challenge and tension as the striking parameter of its characteristic feature. Even Giddens focuses on the tension creating dimension of modernism and argues that the modernism creates tension in building a modern individual by depending upon the idea of competition, self-realisation, and emancipation (Giddens 1997: 284-286). In other word, modern is a kind of transitinory period from the old to the new. In a broader perspective, if it is required to have an etimological analysis, it is seen that the roots of notion modern originates from the the mode or moda which means “new” and “an entity which is “new” and “novelty” as Latin suffix (Giddens 1993: 22). As a derivative, the word modern means the supremacy or hegemony of new one. If we regard the century when the word modern frequently used, it refers the dominance of new values of divinal Christian faith inspite of the previous values of paganist and politheist Greek culture. The other derivative version of modern is modernism implies a kind of political stream which stipulates to widespread the supremacy of new one into the different segments and all spheres of the life and transforms this approach into an ideology and the type of life (King 1995: 27-31). Modernity as another appearence of modernism includes the meaning of a new socio-political milieu which emerges as a result of the penetration of the modernism into the daily social life (Hall 1992: 43-46). Lastly, modernisation is a social phenomenon which refers the transititon process from the traditional entity/sphere into the modern entity/sphere (Göle 2009: 55). As we will explain in following stages of our presentation, there might be different types and forms of modernizm and could be categorized within subject-matter of plural modernities. Nevertheless, it is widely understood from the word modernism, the process of westernization. Therefore, we will attempt to analyze the modernism in different perspective by following trajectories of western history as well as the East-West relations in respect of dialogical interaction and confrontations. Actually, the East and West relations constitute the basis for the modernization process. These relations are consist of very complicated and sophiticated parameters and contain the scopes of sociology, psychology, history, philosophy, culture and politics. The most 419 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo important constituent which prepares the modernisation is a historical experience with its unique and specific character. From Antiquity, as it is widely known Antique Greek is accepted as the cultural historical ancestor of the todays modern European culture and identity, to the Information Society which we are living now, all historical turning points, changes, waves, and transformations witnessed in European Continent creates the specific culture and identity of Europe (İnaç 2010: 143-145). Nevertheless, the aforementioned historical experiences which Europe lived made the European people so arrogant and one with superiority complex that they could assert that evey society and community desired to be civilized is supposed to suffer the same histocal trajectory which Europeans had experienced within the past histoy by depending upon the reason which we will try to elaborate. Moreover, as Alevli argues, the societies should pass form the collusion of the Enlightenment in a pejorative meaning for the sake of arriving the so-called “civilization” (Alatlı 2009: 327). West defines the events, happenings and going-ons which just only are lived in Europe such as Renaissance, Reformation, rationalism, enligthenment, humanism, modernism as the cultural revolutionary ladders and, thanks to these developments, perceives themselves privileged from the other societies and distinguishes the world as “the west and the rest”. As it is known, it is a simple, one-dimensional and reductive categorization. This approach which has been known as “Euro-centrism” aims to sublimate the Europe in every stage of society and supposes the other societeis as the follers of the European steps. For instance, traditional society, agricultural society, modern society, industrial society, postindustrial society, information society (Sezal, 2010: 32-47). According to this approach, when Turkey arrive the level of modern society, Europe would be in post-modern model of society, if Turkey would experience the post-modern social environment, The West would be in information society. Here it is so myobic and arrogant behaviour that the history of the other societies could be seen as indistinc and insignificant. This patological perception of history is called as “weak historianism” with the specific conceptualisation of Göle (Göle 2011: 78-79). Within the background of this understanding was consist of the othering, alienation and marginalisation of the East and the perception of the East as imaginary, phantasmal and romantic realm. Within the framework of the western perception, the East can be just only shaped in accordance with the standpont and vision of the West. Under these circumstances. The Orient as the meaning of the East which the western people perceive, wass full of people lazy, feeble-minded, clumsy and rude ordinary people (Keyman, Mutman, Yeğenoğlu 1996: 77-79). Nevertheless, God donated these people varous kinds of generous benefections and boons. On the other hand, the mission of civilized European people was to relief and remove this unjustifiable and inequal situation and introduce this wealth and capital into the service of all people. This approach and perception gained reputation with the name of Orientalism (Said 1998: 66). As an outcome or product of this understanding, Portugal, Netherland and Spain as the countries which had the naval powers and the leading actors of modernisation went along with the western direction initiated the colonisation process. This brutal, ruthless and inhuman adventure took place in literature as “westernisation of the west” (Delanty 2004: 420 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 59-66). In this period, the west couldn’t have an opportunity to pass into the East because the Ottoman Empire transformed the Mediterranean into the Muslim-Turk Lake and became into common other and threat for Europe. As a result of this reality, the western powers concentrated on spreading her culture and identity into the western part of the west. The aforementioned colonisation process developed in line with the secularism and the establishment of nation-state. In this line, the transportation of almost all wealths of the Arfican and American continents into Europe created the capitalismand ist primitive version of merchantilism. On the other hand, the national culture and identity of the Europe had been universalised and the content of this has been inherented by the notions of human and minority rights, supremacy of law, democracy, multicultalism, cultural plurality. These all collections have been termed as “civilisation” (Ağaoğulları 2009: 34). Nevertheless, there is very important point to bear in mind that if there wouldn’t be the existence of the Ottoman Empire with very strong and firm character led to the constitution fo the modernisation and the notion of civilisation. That is, the Europe would go towards to the East and fragmentatised and emasculated. We can easily summarize this argumentation with below assertation: “the Ottoman Turks as strong and common threat led to the emergence of the extention of modernism and the term civilizaiton by both reinforcing and strengthening the European people among themselves and automatically creating the self identity and directing all attentions and sinergies towards the west as a whole. That is the harbinger for the insight and comprehention of “constitutve otherness” among the European and Turkish identities (İnaç 2010: 177). As it can be comprehended easily this thesis refutes the Eurocentric way of thinking and the theory of cultural evolutionary ladder drastically. In this context, it isinevitable and essential to mention about he historical turning points and the deviances and interruptions of socio-political conjontures which shaped the notion modernisation within European historical perspective. As we expressed above, the historical grouns and basis of the modern European culture and the essence of the European civilization were attributed to Antique Greek “polis” unit (city state) (Delanty 2004: 45). The orudential and rightful reason of this common consensus was the democracy experiment of Greek culture. That was the first time in history. People came together in larger squares called as “agora” and voted in direct way known as “plebiscite”. Greek people regarded to participate into the political decision-making process as a matter of honour and respect even the meaning of life. As a result of this logic, people took on mission and played role in administrative body of Pleb Council rotatively and provided the contribution into the development of the fact of democracy as a gift of humankind (Ağaoğulları 2009: 89). One another distinctive feature of this period was the paganist and politheist faith system which led to emerge the multiculturalism and tolerance agaist the differences. 421 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Nevertheless, Antique Greek culture gave way to Roman Sanctum Imperium which aimed to create a universal Christian civilisation (Christendom). In this period, this Empire attempted to unite the people under the universal papacy, to control the scientific development through Inquisition composed by the selected members of the Curch. Thus, the thinking realm and scientific instruction had been monopolized. Some words such as anathema, excommunicate, indulgence have beeen invented and forged in order to exploit the innocent believers and a privileged clerical class had been created. Scholastic thinking and patristic philosophy constrained the free thinking. Nobody had a chnace to think and decide, everything about the life and world was determined by the instructions and ideas of the patria potestas such as St. Thomas Aquinas and St. Augustion. In this period, people was passive, subject and found no way out to obey the proposals of the Church (Ağaoğulları 2009: 64). For ordinary people, world is ambigious, obscure, complicated and absconditus entity and so incomprehensible universe and period that is called by Weber as “the period of mystification” (Weber 2011: 97-99). The distinguishable events of the period were the emergence of the feudal society between 8-12th centuries. Feudal society determined and shaped by the feudal contract between sub and upper hierarchical positions which had equal right tor two sides to abolish the contract. In that case, we can argue that some democratic tendencies partly prevailed and started to create some democratic traditions (Bloch 2005: 64). Meanwhile, European continent was brutally invaded by barbaric tribes and respectly, was suffered by the pope-emperor wars, the conflict of the religous and worldly authorities, and the disputes of religion and sect. In this period, the people could have some donated and given identities by pope and emporer which could be taken back with arbitrary will. Afterwards, the translation of Holy Book (Bible) into the national languages, and its sending out different communities by means of printing house and by the influences of these books, the deceitfulness and the explotation of the Churc had been exposed. In basle Council, the clerical class couldn’t be settled on an agreement one papacy who will unite the Christian world under one political auspices. In spite of unification, we witness the fragmentation of the Christendom as national sects such as Anglicanism, Catholism, Calvinism with their national churches and institutions. The establishment of these national churches became the turning point in both the creation of nation-states with secular and the modern character and both the prevalance of the Reformation movements. As a prolongation of these sequences of events, instead of divinal religion based on the revelation, a different religious approach depending upon the humanistic interpretations was preponderated. Moreover, the humanisation of socio-political and religious scopes and the homo-centric thinking initiated to be felt in every field of the life. The ordinary people turned into a logical and prudential individual with the urbanization which means to immigrate people to work with industrial areas aorund the factories. 422 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Thanks to these movements, the new greater cities have been established around the factories, people could have an opportunity to work with diffenent jobs and identify themselves in accordance with their jobs. That was the obtained and gained identities instead of the Middle Ages donated identities. The shifting of the identification process led to the settlement of democratic tendencies amaong the different segments of societies. Thus, the individual was placed on the center of socio-political analysis in line with the rationalisation and secularisation processes. Some new understanding and novelties such as the rationalism, individualism, and the cartesian philosophy depended upon the scientific approach oriented with the observation, experiment and concrete reality led to the emergence of the Renaissance implies the revitalization of democracy experiment of Antiquity (Haviland 2002: 31). As a matter of fact, at the end of the 14th century, Italian potbelly bosses precipitated the commerce in costal Italian cities where free from the preassures of both popes and emporers made the individualism prevailind and widespread. After the conquest of Istanbul (Constantinople), in Italy where many scientists fled and supported by the manifacturers and merchants in order to improve the technological innovations, a kind of scientific class has been emerged and called as “scienta” (Ağaoğulları 2009: 172). The Enlightenment reflected itself into the notions demystification, selfrealisation and emancipation (Weber 2011: 74). As the main parameters of the Enlightenment, the demystification refers to the power of humankind to explain totally and change the world for his primary athropological necessities such as nutrition, sheltering and fertility. In case of self-realisation, it is the demonstration of human capacity by grasping the environmental realities in line with the proficiency and skills of the humankind. Lastly, the notion emancipation points out the disruption of people with their traditional ties and becoming free from the religious and authoritarian pressures. Thanks to the rationalism, enlightenment, and developing technology, people focused on the industry, manufacture, handicraft and immigrated form rural area to the urbanized and industrialised centers and had an opportunity to create and define their individualistic spheres. In that case, the individualism implies the realm consists of interests, necessities, and demands distinguished and apart from the rest of the society’s common values, traditions and tendencies where he or she born in. This individual sphere was so intimate and private that nobody could intervene and violate (İnaç 2010: 163-164). In addition to the essential constituents of the modernisation, as an expressional reflection for the self-confidence and dignity of humankind, the notion “humanism” has been discovered as the shaping, possession, prepondarence dominating and monitoring capacity of the nature and environment in accordance with the hauman benefit (Haviland 2002: 94-96). As a conclusion, this self-confidence arisen from the past historical experience we elaborated in this study led to the appearance of the hegemonic narrative, culture-bound perception, Eurocentric approach towards the world was inherited by modernity which made the societies disciplinised and restricted entities. Nowadays communities depicted as the rest of the west 423 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo attempt to discover their own traditions and local values and try to combine and harmonize their own culture and history with the western modernity. BIBLIOGRAPHY 1. Alatlı, A. 2009. Aydınlanma değil, Merhamet: İstanbul 2. İnaç, H. 2010. Türkiye’nin Kimlik Problemleri: Bursa 3. Weber, M. 2011 Protestan Ahlakı ve Kapitalizmin Ruhu: Ankara 4. Ağaoğulları, M. A. 2009: Kent Devletinden İmparatorluğa: Ankara 5. Haviland, W. 2002. Kültürel Antropoloji. Trans. H. İnaç: İstanbul 6. Delanty, G. 2004. Avrupa’nın İcadı. Trans. H. İnaç: Ankara 7. Bloch, M. 2005. Feodal Toplum. Trans. M. A. Ağaoğulları: Ankara 8. Göle, N. 2011. Modern Mahrem: Ankara 9. Said, E. 1998. Oryantalizm. Trans. Nezih Uzel: İstanbul 10. Berting, J. 2006. Europe: A Heritage, a Challenge, a Promise: Netherland 11. Giddens, A. 1994. “Living in a Post Traditional Society”, U. Beck, A. Giddens, S.Lash (editorial) in Reflexive Modernisation, Cambridge Press: Britain 12. Giddens, A. 2006. Sosyoloji: Eleştirel Bir Giriş. Trans. R. Esengül: Britain 13. Hall, S. 1992. “The Rest and West: Discourse and Power”, S. Hall, B. Gieben (editorial) in Formation of Modernity: USA 14. King, A. 1995. “The Times and Spaces of Modernity”, M. Featherstone, S. Lash, R. Robertson (editorial) in Global Modernities: USA 15. Keyman, Mutman, Yeğenoğlu, Oryantalizm. 1996. Hegemonya ve Kültürel Fark: Ankara 16. Sezal, İ. 2010. Sosyolojiye Giriş: İstanbul 424 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1138 Title A name given to the resource The Historical Dynamics Of Modernizm: A Critical Perspective Author Author Hüsamettin, İnaç Abstract A summary of the resource. In recent decades, the modernism and modern socio-political analysis has been subjected to criticism in many respects. The ideas of the global, post-modern and post-industrial societies attempted to legimitize themselves over the criticism of the modern approach towards the economic, social, political and philosophical parameters of modern version. Due to the fact that the institutions, models, matrixes pertaining with the modern realm faded away one after the other, challenging and confrontation with modernizm was popularized. Nevertheless, many critical series of analysis remained as deficient, abortive and defective studies because many researchers had not adequate information and awareness about the dynamics of the modernism which was shaping the main character of modernism. Yet modernism just as the other movements of thought was directly relevant, related and bound to the time and space which produce them. In the light of this understanding, we attempted to elaborate the main historical dymanics and the socio-political ground which the modernizm had been created. We hope that this study demonstrates the intrinsic and essential trajectory which the modernism followed within the dark labyrinth of history in order to meet the expectations of alternative models of societies as an harbinger. Keywords: Modernism, modernisation, modern fallacy, social change, individualism, Eurocentrism, colonialism, rationalism Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/dac5558e204c0dc9582737eadb16242d.pdf 03e4a8a1e85df74e1690815f3dedc2a2 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo REFERENCES N. Noroozi, B.Khaki, A.Seifi,(2008)., Chaotic Oscillations Damping in Power System by Finite Time Control Theory, International Review of Electrical Engineering (I.R.E.E.), Vol. 3, N. 6 November-December E. Ott, C. Grebogi, J. A. Yorke, (1990). Controlling chaos, Phys. Rev. Lett. A, Vol.64, No.3, 1196-1199 S. Emiroğlu and Y. Uyaroğlu, (2010). Control of Rabinovich chaotic system based on passive control, Scientific Research and Essays Vol. 5(21), pp. 3298-3305. B. Stojkovska, A. Stefanovska, R. Golob, David GrgiC, (2001). Time-delay feedback control of ferroresonant chaotic oscillations, IEEE Porto Power Tech Conference l0th -13th September, Porto, Portugal V. Mortezapour, H. Lesani, A.Abbaszadeh, M. Isapour, (2009). Adaptive control of chaotic ferroresonant oscillations in electromagnetic voltage transformers, 24th International Power System Conference, 09-E-TRN-0154, PSC2009, A.E. Matouk, (2008) Dynamical analysis, feedback control and synchronization of Liu dynamical system, Nonlinear Analysis 69 3213–3224 Juan Ding, Weiguo Yang, Hongxing Yao (2009) . A New Modified Hyperchaotic Finance System and its Control, International Journal of Nonlinear Science Vol.8No.1,pp.59-66. Time delay feedback control of chaos in a hyper chaotic finance system Hüseyin Gelberi, Selçuk Emiroğlu, Yılmaz Uyaroğlu, M. Ali Yalçın Sakarya University, Electrical Electronics Engineering Department, Turkey E-mails: hgelberi@sakarya.edu.tr, selcukemiroglu@sakaryaedu.tr, uyaroglu@sakarya.edu.tr, yalcin@sakarya.edu.tr Abstract In this paper, complex behavior of a four dimensional continuous autonomous hyperchaotic finance system is investigated. Also, this paper discusses the control of four dimensional continuous autonomous hyperchaotic finance system by using time delay feedback control technique. Based on the property of the time delay feedback control, the controller is designed and this controller is added to hyperchaotic finance system for achieving the control of the system. As a result, the control of four dimensional continuous autonomous hyperchaotic finance system is realized. To confirm the validity of the proposed method, numerical simulations are presented graphically. Keywords: Hyper chaotic finance system, chaos control, time delay feedback control 139 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 1. INTRODUCTION Chaos has been extensively interesting study area for many scientists, after Lorenz found the first attractor in 1963 (Lorenz, 1963). After Lorenz, many chaotic systems were introduced such as Liu system (Liu et al., 2004), Chen system (Chen, Ueta, 1999), Chua system (L.O. Chua et al., 1986), Rössler system (Rössler, 1976), Rabinovich system (Pikovski, Rabinovich et al., 1978) and Rikitake system (Rikitake, 1958). Chaos control has received increasingly attentions from researchers, since OGY (Ott et al., 1990) method has been proposed. Many control methods have been proposed for the control of chaotic systems such as adaptive control (Wu CW et al., 1996, Y. Hong et al., 2001), sliding mode control (Konishi et al., 1998; Ablay, 2009), linear feedback control (Yassen, 2005), and passive control (Lin, 1995; Qi, 2004; S. Emiroğlu, 2010) Juan Ding (J. Ding et al., 2009) have reported a dynamic model of 4D chaotic finance system, composed of three first-order differential equations with state feedback. The state equations of 4D chaotic finance system are written below Eq 1. x  a( x  y )  w y   y  axz (1) z  b  axy w  cxz  dw where a; b are the parameters of the system (1), and c is constant(where c=0.2), and d is the control parameter. a w 1 x x s d a 1 b y 1 s s w a y 1 c s z z Figure 20 Matlab-Simulink model of hyper chaotic system Using Matlab model of system (Figure 1), when parameters a = 3, b = 15, c = 0.2 and d= 0.12, chaotic time series and phase portraits of system are obtained as shown in Figure 2 and Figure 3 respectively. 140 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 10 x 0 -10 0 10 20 30 40 50 60 70 80 90 100 60 70 80 90 100 60 70 80 90 100 60 70 80 90 100 5 10 t(s) 20 y 0 -20 0 10 20 30 40 50 t(s) 20 z 0 -20 0 10 20 30 40 50 t(s) 20 w 0 -20 0 10 20 30 40 50 t(s) Figure 2 Time series of system 20 15 15 10 10 5 z y 5 0 0 -5 -5 -10 -10 -15 -10 -5 0 5 -15 -10 10 -5 0 x x 1 1 0.5 0.5 w 1.5 w 1.5 0 0 -0.5 -0.5 -1 -20 -10 0 10 -1 -15 20 y -10 -5 0 z Figure 3 Phase portraits of system 141 5 10 15 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 2. CHAOS CONTROL OF HYPER CHAOTIC FINANCE SYSTEM Pyragas (Pyragas, 1992) showed that chaotic behavior could be controlled by applying delayed feedback control method. The control of chaotic finance system (2) is achieved using time delay feedback control theory. The controlled model given by x  a( x  y )  w y   y  axz (2) z  b  axy  u w  cxz  dw The controller u(t) is designed based on time delay feedback control as in Eq. u(t )  K[ z(t )  z(t   )] (3) u(t) obtained that the difference between current value of system variable z(t) and its τ seconds previous multiplied by constant K, where K is feedback gain. The structure of the Simulink model for the controlled chaotic finance system using delayed feedback control method is given in Figure 4. a 1 w x x s d a 1 y 1 s s w a b y 1 c s z z t -K - Clock Figure 4 Matlab-Simulink model of controlled hyper chaotic system with time delay controller Time series of system and controlled system are shown in Figure 5. After the controller is activated at t=20s, the system converges to zero equilibrium point as shown in Figure 5. 142 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo x 10 0 -10 0 5 10 15 20 25 30 35 40 45 50 30 35 40 45 50 30 35 40 45 50 t y 20 0 -20 0 5 10 15 20 25 t w 2 0 -2 0 5 10 15 20 25 t Figure 4 Time series of controlled hyper chaotic finance system when controller is activated at t=20s 3. CONCLUSION The delay feedback control has been used to control chaos in hyper chaotic finance system. By using the time delay feedback theory, controller is proposed to realize the global asymptotical stability of the finance system. Also, the controller provides that the controlled system converge to zero equilibrium. As shown in Figure 4, the controlled system converges to zero equilibrium. REFERENCES E.N. Lorenz (1963). Deterministic non- periodic flows, J. Atmos.Sci., Vol.20, No.1, 130–141. A.S. Pikovski, M.I. Rabinovich, V.Y. Trakhtengerts (1978). Onset of stochasticity in decay confinement of parametric instability, Sov. Phys. JETP 47; 715-719. C.X. Liu, et al.( 2004). A new chaotic attractor, Chaos, Solitons &Fractals, Vol.22, No.5, 1031–1038. E. Ott, C. Grebogi, and J.A.York (1990). Controlling chaos,Phys.Rev.Lett.,vol.64,pp.11961199. G. Chen, T. Ueta (1999). Yet another chaotic attractor, Int. J.Bifurcation and Chaos, Vol.9, No.7, 1465-1466. L.O. Chua, M. Komuro, T. Matsumoto (1986). The double scroll Syst., Vol.33, No.11, 1073.1118. 143 family, IEEE Trans. Circ. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Rikitake T (1958). Oscillations of a System of Disk Dynamos,Proc. Cambridge Philos. Soc.,54:89. Rössler OE (1976). An equation for continuous chaos, Phys. Lett. A,;57:397–398. Wu CW, Yang T, Chua LO (1996). On adaptive synchronization and control of nonlinear dynamical systems, Int J Bifurcat Chaos, 6:455–71. Y. Hong, H. Qin, G.R. Chen (2001). Adaptive synchronization of chaotic systems via state or output feedback control, Internat. J. Bifur. Chaos, Vol.11, No.3, 1149–1158. K. Konishi, M. Hirai and H. Kokame (1998). Sliding mode control for a class of chaotic systems, Phys. Lett. A, vo1.245, pp.511-517. Günzay Ablay (2009). Sliding mode control of uncertain unified Nonlinear Analysis: Hybrid Systems, vol.3 531-535. chaotic systems, M. T. Yassen (2005). Controlling chaos and synchronization for new chaotic system using linear feedback control, Chaos, Solitons and Fractals 26, 913–920. W. Lin (1995). Feedback stabilization of general nonlinear control system: A passive system approach, Syst. Contr. Lett., vol. 25, pp. 41–52. Qi, D., G. Zhao and Y. Song (2004). Passive control of Chen chaotic system, Proc. of the 5th World Congress on Intelligent Control and Automation, Hangzhou, China, pp.1284-1286. S. Emiroğlu, Y. U. (2010). Passivity based Chaos Control of the T System,. IMS 2010 (s. 118-125). Sarajevo, Bosnia Herzegovina: International University of Sarajevo. Juan Ding, Weiguo Yang, Hongxing Yao (2009) . A New Modified Hyperchaotic Finance System and its Control, International Journal of Nonlinear Science Vol.8No.1,pp.59-66. Pyragas K. (1992). Continuous control of chaos by self-controlling feedback. Phys Lett A;170 :421–8. A Literature Review About Sustainability Accounting Filiz Angay Kutluk1,Mustafa Gülmez2 1 Akdeniz University, Ayşe Sak School of Applied Sciences, Antalya,Turkey 2 Akdeniz University, Tourism Faculty, Antalya,Turkey Abstract Purpose: The purpose of this paper is to give a brief information and review ‘Sustainability Accounting’ articles published in the period of 2000 to 2011. Method: Articles are collected by searching main databases by abstract, keyword or article title that contain ‘Sustainability Accounting‘. Analyses mainly include quantity analysis and purpose analysis. The articles are classified according to journals and years in quantity analysis. The main purposes of the articles are mentioned in the purpose analysis. Findings and recommendations: The classifications are shown in tables and discussed. The mostly published years and journals, the mostly chosen subject area and purposes are 144 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1290 Title A name given to the resource Time delay feedback control of chaos in a hyper chaotic finance system Author Author Hüseyin , Gelberi Abstract A summary of the resource. In this paper, complex behavior of a four dimensional continuous autonomous hyperchaotic finance system is investigated. Also, this paper discusses the control of four dimensional continuous autonomous hyperchaotic finance system by using time delay feedback control technique. Based on the property of the time delay feedback control, the controller is designed and this controller is added to hyperchaotic finance system for achieving the control of the system. As a result, the control of four dimensional continuous autonomous hyperchaotic finance system is realized. To confirm the validity of the proposed method, numerical simulations are presented graphically. Keywords: Hyper chaotic finance system, chaos control, time delay feedback control Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance https://omeka.ibu.edu.ba/files/original/a00a6f1d0d0877a4bd52ad6eaab062e4.pdf 90dd6bd1b508312dedab9026b54742e8 PDF Text Text Ökmen, M. (2006) Uyum Sürecinin Ekoloji-Politiği: AB ve Türkiye‘de Çevre Politikaları, AB Yolunda Türkiye: Müzakere Sürecinin Ekonomi Politiği, M. Dikkaya (eds), Alfa Aktüel, İstanbul. Önder, T. (2003) Derin Ekoloji Üzerine, Liberal Düşünce Dergisi, 8 (30-31), Turgut, N. Y. (2009) Çevre Politikası ve Hukuku, İmaj Yayınevi, Ankara. Ünder, H. (1997) Çevre Ahlakı: İnsanmerkezcilik ve Çevremerkezcilik, Adakentliyim, 3 (10). Woods, K. (2006) What Does the Language of Human Rights Bring to Campaigns for Environmental Justice?, Environmental Politics, 15 (4), August, 572-591 Yılmaz, A. Bozkurt Y. (2007) Avrupa Birliği‘ne Uyum Sürecinde Türk Çevre Politikalarının Dönüşümü, Küresel Esintiler ve Yerel Etkiler Sarmalında Türk Kamu Yönetimi, (eds.) A.Yılmaz and Y. Bozkurt, Gazi Kitabevi, Ankara. Importance of Tissue Culture Techniques in Sustainablity of Endangerd plant Species Ibrahim Baktir1*,Gülden Yilmaz1, Özgül Karaguzel2 and Deniz Hazar3 1Akdeniz University, Faculty of Agriculture, Department of Horticulture, Antalya 2Western Mediterranean Research Institute, Antalya 3Akdeniz University, Kumluca Vocational School, Antalya E-mail: ibaktir@akdeniz.edu.tr Abstract Tissue culture techniques have profound importance in mass propagation of various commercial crops in practice as in well known fruit tree rootstocks, a few vegetable and especially ornamental plants as well as some undomesticated plant species. Herbaceous species are somewhat easier to propagate compared to woody ones by tissue culture techniques. These techniques have not affectively applied to native plant species due to economical concerns although so many native plant species have been under threat and therefore they have been facing with extinction in all over the world. Human interferences is the main cause of the extinction of wild species especially in highly populated areas as it is the case in Marmara, Aegean and Coastal Mediterranean regions of Turkey because of new settlements, infrastructural works, overgrazing and uncontrolled collections. Thus, a big number of wild plant species are disappearing every year. Tissue culture techniques have merit value to propagate the endangered wild plant species to release the encountering pressure on these plants Keywords: Tissue culture, endangered species, sustainability 345 �1.What is an endangered plants An endangered species is a population of organisms (animals or plants) which is at risk of becoming extinct because it is either few in numbers or threatened by changing environmental or predation parameters. The International Union for Conservation of Nature (IUCN) has calculated the percentage of endangered species. Many nations have laws offering protection to conservation reliant species: for example, forbidding hunting, restricting land development or creating preserves. In spite of the conservation activities, the threat is a real universal problem. About 9,322 plant species are under threats in the world. Unfortunately, the problem is getting bigger in every next year. The U.S.A is a world leader in endangered plants. The Turkish Flora has a similar problem. The threats facing the Turkish flora are diverse and fall into no fewer than 25 categories, ranging from agricultural reclamation, intensive forestry and industrial/urban development‘s (which often affect sites to a large and highly damaging extent), to less obvious threats such as the collection of species for trade and the spread of invasive alien plant species into environment. Conservation of the endangered species will require a range of approaches to be taken from improved legislation to on-the-ground site management (Özhatay et al., 2005). Due to uncontrolled collection, mainly in herbaceous plants including aromatic and medicinal plants have been facing with threat for years. Unfortunately, there is no official status for these plants yet. The wild plant collectors and traders are getting the advantage of gaps of the status and legislations for uncontrolled wild collections mainly on Western Taurus Mountains. Some of these plants are heavily under threat. Beside flowering geophytes (Galanthus elwesii, Anemone blanda, Eranthis hyemalis, Cyclamen spp. and Stenbergia candida), a list of top ten of these aromatic and medicinal plants are given in Table 1(Özhatay et al., 1997). Table 1: A List of Ten Aromatic and Medicinal Plants Which are Under Threat Scientific Name Family English Name IUCN Categories 1. Acorus calamus Araceae Sweet flag Endangered (ED) 2.Ankyropetalum gypsophylloides Caryophyllaceae Siirt gypsum Data deficient (DD) 3. Ballota cristata Labiatae Foetid, horehound Rare (R) 4.Barlia robertiana Orchidaceae Orchis, salep Endangered 5.Gentiana lutea Gentianaceae Gentian, bitter root Endangered 6.Gypsophiyla arrostii Caryophyllaceae var. nebulosa Arrost‘s baby‘s-root Rare 7.Lycopodium annotinum Lycopodiaceae Wolf‘s claw Data deficient 8.Origanum minutiflorum Labiatae Marjorum Rare 346 �9. Paeonia mascula Paeoniaceae Peony Rare 10. Ruscus aculeatus Liliaceae Butcher‘s broom Vulnerable (VU) *Özhatay et al., 1997. DD-Data deficient: A taxa is DD when there is inadequate information about its distribution and/or population status. ED-Endangered: A taxa is ED when it is not critically endangered but is facing a very high risk of extinction in the wild in the near future. VU- Vulnerable: A taxa is VU when it is not critically endangered but it is facing a high risk of extinction in the wild in the medium-term future. R-Rare: A taxa is R when it is small world populations that is not at present endangered or vulnerable but it is at risk. 2. Tissue Culture Tissue culture (micro propagation) involves the production of plants from very small plant parts, organs, tissues and cells under aseptic conditions in test tubes or various other containers. The environmental conditions and special media either semi solid or suspension which contain inorganic nutrients as well as phytohormones, vitamins, carbohydrates and some others depends on the plant species and cultivars (Murashige and Skoog, 1962). The environmental conditions and light regimes are strictly controlled throughout the cultural activities. The ability to grow plant tissue and various plant organs such as stems, flowers, roots, embryos, and side products in university and research institutes laboratories and also in commercial laboratories has been in effect for many years. Tissue culture is a general term which has been universally accepted for micro propagation of the plants in even though it has specific uses. The application of tissue culture techniques to the regeneration and commercial propagation of a good number of economical plants has been widely used in many countries. Therefore, the tissue culture practices became good alternative for conventional propagation methods for a wide range of important plant species (Babaoğlu et al., 2004; Baktır et al., 2003). Tissue culture systems have two primary uses beside many secondary ones 1) Rapid mass propagation of clones and 2) Development, maintenance and distribution of specific pathogen tested clones especially virus free ones Some of the secondary uses of tissue culture systems are; 1) Propagation of the difficult to root species and cultivars 2) Easiness of selecting promising individuals 3) Various applications in plant breeding 4) Preserving endangered species in stock houses 5) Very practical and useful techniques for gene banks 6) Producing side (secondary) products such as pharmaceuticals‘ in cell suspension systems and so forth. 347 �Tissue culture works are a kind of long chain works with a few important steps as shown in Figure 1. Flowering plant Low-temperature forcing Ready for forcing Parent selection Mass production by seeds Nodes from stalks Cross Mass production by tissue culture Capsule development, 3-6 months Capsule Multiplication in flask, 1-2 years Plants in 10.5-cm pots, 4-6 months de-flask de-flask Plants in 7.5-cm pots, 4-6 months Plants in 4.5-cm pots, 3-5 months Seed germination and subculture, 10-15 months Fig. 1: A detailed schema of tissue culture practices step by step( Chang, 2012) Tissue culture techniques can be easily used for rapid and mass propagation of endangered plant species in order to release the present pressure and also sustainable uses of them. REFERANCES Babaoğlu, M., Gürel, E. And Özcan, S., 2004. Bitki Biyoteknolojisi: Doku Kültürü ve Uygulamaları. Cilt 1. Selçuk Üniversitesi Kampüsü, Rixos Oteli Girişi Yanı, Vakıf İdari Bina, Konya. Baktir, İ., Uysal, S. and Özel, S., 2003. Doku kültürü yöntemi ile miszambak (Lilium candidum ) yetiştiriciliği üzerine bir araştırma. IV: Ulusal Bahçe Bitkileri Kongresi, 8-12 Eylül 2003,514-515, Antalya. Chang, Y.-C. A.,2012. Phalaenopsis Production in Taiwan. XI. International Symposiun on Flower Bulbs and Herbaceous Plants. March 28-April, 2012., Antalya, Turkey Murashige, T. and Skoog, F., 1962. A revised medium for rapid growth and bioassays with tobacco tissue cultures. Physiol Plant 15(3): 473-497. Özhatay, N., Byfield, A., and Atay, S., 2005. Türkiye‘nin 122 Önemli Bitki Alanı. WWW Türkiye(Doğal Hayatı Koruma Vakfı), Istanbul. 348 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1266 Title A name given to the resource Importance of Tissue Culture Techniques in Sustainablity of Endangerd plant Species Author Author Ibrahim , Baktir Abstract A summary of the resource. Tissue culture techniques have profound importance in mass propagation of various commercial crops in practice as in well known fruit tree rootstocks, a few vegetable and especially ornamental plants as well as some undomesticated plant species. Herbaceous species are somewhat easier to propagate compared to woody ones by tissue culture techniques. These techniques have not affectively applied to native plant species due to economical concerns although so many native plant species have been under threat and therefore they have been facing with extinction in all over the world. Human interferences is the main cause of the extinction of wild species especially in highly populated areas as it is the case in Marmara, Aegean and Coastal Mediterranean regions of Turkey because of new settlements, infrastructural works, overgrazing and uncontrolled collections. Thus, a big number of wild plant species are disappearing every year. Tissue culture techniques have merit value to propagate the endangered wild plant species to release the encountering pressure on these plants Keywords: Tissue culture, endangered species, sustainability Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),Q Science (General) https://omeka.ibu.edu.ba/files/original/7880ff422bb7cba9ea0c0ee35bee2440.pdf 87739f04f793666887d8c394791a6263 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Efficiency and Impact of Economic Sanctions Ilham Redzic International University of Sarajevo Faculty of Business and Administration, Bosnia and Herzegovina E- mail: redzic_ilham@hotmail.com Abstract The purpose of this paper is to examine economic sanctions as a foreign policy instrument and to give judgment to their efficiency and impact. Since WWI economic sanctions have been used as a tool for preventing conflicts and signaling instrument of foreign policy. Their efficiency and impact have been the main topics for many discussions. Since the War in Yugoslavia in 1991, economic sanctions gained on their importance and usage. Two classical examples of economic sanctions will be discussed in this paper: War in Yugoslavia and sanctions against Iran. Economic sanctions appear to be unsuccessful in most cases and their usual victims are innocent inhabitants. Keywords: Economic sanctions, efficiency of economic sanctions, Yugoslavia, Iran. 1.INTRODUCTION Since the beginning of human kind, people and nations have been fighting among themselves. Wars have become part of daily life because of reasons such as pretensions of some countries for territory of other countries, their economic and cultural wealth etc; or even to impose their own beliefs on others. One of the means used in achieving those goals are economic sanctions. Although, Economic Sanctions are ideated to be means for preventing conflicts, they often do not serve the purpose. This paper will provide basic information about economic sanctions as well as their analysis and effectiveness, their importance in the foreign policy of countries, and also their role in war and pre-war preparations. The main idea of this paper is that economic sanctions are usually not effective and they almost always harm civilians. The structure of the paper is as follows: Section 2 is the literature review. In Section 3, economic sanctions will be discussed as a phenomenon. Answers for many questions regarding economic sanctions and their role as foreign policy tool can be found in this part. Section 4 provides information about economic sanctions imposed on Serbia during 1990s and current sanctions against Iran. Finally, Section 5 concludes. 205 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 2.Literature review Radcliffe (2010) states that economic sanctions are penalties imposed against another country in order to force that country to change its policies, by inflicting economic losses. Debating on efficiency of economic sanctions, Radcliffe (2010) says that success of sanctions depends on how many parties are involved in imposing sanctions. He states that bilateral sanctions are more effective than those imposed unilaterally (the USA sanctions are often unilateral), but overall success of economic sanctions is very low. As he says, sanctions usually affect ordinary people without achieving targeted goal. Lektzian and Souva (2007) claim that effects of economic sanctions are “conditional” meaning that economic sanctions imposed on non-democratic society are less effective than those imposed on democratic society. They also argue that economic sanctions that are imposed on poor countries by powerful states are often effective, due to the fact that poor countries are highly dependent on economic aid from strong economies. Economic sanctions are not efficient and they are often imposed to show that sender country (country which sends sanctions) does not agree with political situation in receiving country (country that receives sanctions). Sometimes, country imposes unilateral sanctions when they are helpless in exercising their influence upon others, says Wallensteen (1968). Andreas (2005) states that economic sanctions should be used, but only those which will not have criminalizing effects, such as smuggling of banned goods and other illegal acts. For him, targeted sanctions such as freezing foreign assets of leaders, and diplomatic embargo are likely to have very few criminalizing consequences, and are therefore better for achieving the goal. Davis and Engerman (2003) argue that increased usage of economic sanctions is good because it is always better to make changes in the world through peaceful acts than through military acts. This reason is very strong, but Davis and Engerman (2003) also conclude that states with higher economic power and better political situation are able to impose more effective sanctions than poor countries. This implies that economic sanctions always serve only the rich countries and they are anti-poor oriented. On the other hand, some authors argue that economic sanctions are successful. In their research, these authors ignore sanctions whose goal is only to send signals. According to Hufbauer, Jeffrey and Elliot (2008) those sanctions should not be evaluated because they do not have clear definition and clear target. They are imposed only as opinion of one country towards policy of others. Roger (1996) advocates economic sanctions more than others. She argues that if the sanctions are to be successful, it is important that imposer is very familiar with the roots of wars, be better predictor of those conflicts, and at the end, is able to impose proper sanctions. Henderson (1998) agrees with authors who think that economic sanctions harm only innocent and ordinary inhabitants of countries. It is natural that heads of the states affected by sanctions do not share pain with their vassals. Knowing this, we can say that economic sanctions are really inefficient. They affect those people that are not real target of economic sanctions. But imposer countries do not care about innocent people. They are only concerned with achieving their goals, even though their experience tells them differently – the sanctions will not be efficient. Rarick (2007) agrees with most authors when it comes to ineffectiveness, and even concludes that economic sanctions are wrong tools of foreign affairs. He states that even though many 206 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo powerful countries know sanctions odds for achieving goals are small, they still use them whenever they can. One of the most cited authors regarding this topic is Robert Pape. Robe (1997) indicates that only in 5% of all cases economic sanctions could be recognized as the reasons for political changes. Blanchard and Ripsman (2000) claim that economic sanctions’ effects are “unquestionably negative” compared to expectations of those who impose them. They also say that neither economic sanctions nor the threat of imposing economic sanctions can bring true changes in political sense of one country. 3.Economic Sanctions 3.1.What are the Economic Sanctions? Economic sanctions are tools for international policy, tools for showing countries’ opinions regarding some situations and instruments for international political changes. They also serve as a tool for punishing countries that are violating human rights of their inhabitants, or they represent some source of threat to the rest of the world. Their most important function is probably to work on preventing all of the sources of human conflicts. Elliot, Hufbauer and Oegg (2008) note that economic sanctions have three main functions: to punish, to prevent, and to make changes in political sense. Economic sanctions as punishments are used very often; sometimes as a punishment for disordering international law and order; sometimes as punishment for country’s oppression and disrespecting of human rights. Second function, as crucial function, is to deter conflicts between countries (ex countries of ex Yugoslavia) and civil wars. In order to prevent high costs of war and to avoid all other costs that are sometimes more important than human lives, economic sanctions are used as very powerful tools for resolving disputes. By forbidding international aid or putting embargo on imports of weapon, imposers could affect (slow down) further progress of the conflicts. Third function is used frequently nowadays. This function of economic sanctions is used in order to influence political changes in some countries (Libya, Syria, etc), or to decrease security threat from other countries (Iran, North Korea). By imposing sanctions, powerful countries (imposer) can manifest their disagreement regarding political situation in the country that receives sanction. Usage of economic sanctions is in constant trend of enlargement. It is obvious that economic sanctions are becoming one of the main international policy tools. The United States of America is the leading country in imposing economic sanctions and its portion of all sanctions imposed in the world since WWII is very large. Table 1: Trends in Use of Economic sanctions Number of new cases of economic sanctions imposed until 1999. Period 1914-1949 1950-1959 1960-1969 1970-1979 1980-1989 19901999 207 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Type Non-U.S. 11 6 7 9 7 18 Other & 4 4 4 3 8 30 4 3 10 26 13 14 19 13 21 38 28 62 U.S. Unilateral U.S. Total Source: Institute for International economics and center for global development, Washington, 2006 Table 1 shows the increase in usage of economic sanctions since WWI until the last year of the 20th century. It also shows portions of Non-USA sanctions, bilateral sanctions of the USA and other countries, and unilateral sanctions imposed by the USA. During the 1970s, unilateral sanctions imposed by the USA increased a lot due to Cold War era. It can be concluded that usage of all types of Economic sanctions boosted during the 1990s. Figure 1 shows the ongoing economic sanction trends and comparison of the USA sanctions and all other sanctions in the world. It can be concluded that increase in usage of economic sanctions as foreign policy tool, by the USA, is much higher than usage of all other countries in the world. Figure 1. 208 Trends in ongoing Economic sanctions �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Source: Institute for International economics and center for global development, Washington, 2006 3.2.Efficiency of economic sanctions Since the emergence of economic sanctions there is a debate about their efficiency. Although there are some people who argue that economic sanctions are efficient in reaching their goals as foreign policy tool, majority concludes that economic sanctions are mostly inefficient. If that is so, why are they still in use and why they stayed first option in resolving the international disputes? All sanctions that are imposed have some goals (to send signal; to punish, etc.) and if those goals are reached, we can say that economic sanctions are successful. Based on empirical evidence, it can be concluded that economic sanctions are generally inefficient. To determine the real success of sanctions it is important to look at their real objective and purposes. It is natural to expect inefficient sanctions, if objectives are mixed or too complex. Sometimes, sanctions are meant to be inefficient and their only goal is to declare opinion or to send a signal. Although some scholars see much more success in imposition of sanctions than others, economic sanctions often end with military operation within target country. For example, Hufbauer et al. (1985) argue that economic sanctions show success in 34% of all examined cases, from 1914 until 1990. Table 2: HSE Research on Economic sanctions cases Source: Pape (1998) According to Table 2, 41 case of all considered in HSE research was successful, while 79 were failures. Highest success was recorded when goal was to destabilize country, which is natural because it is easy to destabilize one country using Economic sanctions as weapon. In his response to this result, Robert Pape (1998) concludes that much of these “successful” cases ended in war. In his examination of these cases he came to result in which only 5% of all cases could be called successful. Pape (1998) considered 8 cases in which economic sanctions influenced loss in the GNP of one country more than 4.6%, and he called them “High Punishment and Sanction Outcomes”. 209 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Table 3: Sanctions Outcomes in HSE cases Source: Pape (1998) Of all these cases, only one was complete success (India’s imposition of sanctions against Nepal) according to Pape (1998). It is really ironic that some economic sanctions hit one country’s economy, almost destroy it, and at the end they show failure. Even with all of these conditions fulfilled, Pape (1997) thinks that economic sanctions will not be completely efficient, and that military action is always better solution in terms of reaching the goals of foreign policy. Rudy and Ventheicer (2006) argue that efficiency of economic sanctions depends on characteristics of sanction itself. If sanctions are imposed bilaterally, they have better odds to be partially successful. Another characteristic that influence success of economic sanctions is duration of imposed sanctions. If sanctions are meant to last over long period of time, it is more likely that they are going to be less successful or completely unsuccessful. Also, there is the question of cost of the imposed sanctions. If sanctions impose high costs to target country, and if they do not impose high costs to country sender of sanction, they will be more successful (Rudy and Ventheicer, 2006). Those authors that argue conditional effect of economic sanctions (Lektzian and Souva, 2007) base their conditionality on the fact that democratic societies will be affected by economic sanctions more than non-democratic societies. Lektzian and Souva (2007) identify three categories that influence success of economic sanctions: sanctions that express interest, punishment and institutions. Sanctions for expressing interest are not concentrated on making changes in policy of other countries, but rather to make inhabitants and voters pleased with the actions of their government. Second category is sanctions that are used as tool for punishment. Those sanctions follow simple policy of imposition of economic sanctions against countries whose policy is about to be changed. Third category are institutional sanctions that are combination of those two mentioned above. Elliot et al. (2008) also argue some sort of conditionality. When deciding whether sanctions are effective, they sort them by their goals, their political and economic impact on country affected by sanction, their characteristics in given occasion. When governments impose sanctions that have conflicted goals, sanctions will most probably be ineffective and unsuccessful. When it comes to sanctions whose goal is to change government of other country, they must be all-inclusive and quickly imposed. “A strategy of “turning the screws” (increase pressure and extend the duration) gives the target leaders time to adjust by finding alternative suppliers or markets, by building new alliances, and by mobilizing domestic opinion in support of its policies.” (Elliot et al. 2008) Those three authors recommend 4 assumptions according to which economic sanctions will be the most successful: Sender of sanctions should avoid high costs, both political and economic (when sanctions with higher cost of imposition fail, country sender can have severe 210 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo problems); multilateral sanctions together with modest goal (not too big bite) are more efficient than others (when sanctions have small goal to achieve and when they are imposed multilaterally, they have better odds for success ); imposed sanctions should be quick and comprehensive (successful sanctions lasted about three years, while unsuccessful sanctions lasted about eight years); target country should be weaker in political and economic sense, than country imposer (it is natural that stronger countries are able to impose stronger sanctions and that sanctions imposed against poor countries are more successful). Economic sanctions were very effective during the 1940s and 1950s. But after developments in world economy and increase in usage of unilateral sanction (especially the USA), efficiency of those sanctions is enormously decreased. Today’s economies are very connected and they heavily depend on international trade. Although this dependence means various sources of supply, it also means that imposition of economic sanctions is easier than ever. In his speech, Patterson (1994) derived few important conclusions regarding economic sanction imposition: It is important to know the right time and place for imposition of sanctions; harshness of sanctions should be proportionally divided and those who are not guilty for bad policy should not be harmed by sanctions; countries that impose sanctions should monitor their effects very closely; only legitimate authority should impose sanctions (e.g. the UN); sanctions should be imposed according to their popularity amongst people of targeted country (if there is a strong opposition, there is higher chance that people will follow that opposition against leading party or leader); it is very important to protect basic human rights guaranteed by international authorities and conventions while imposing sanctions; sanctions need some time in order to start working. This last conclusion is in conflict with opinions of majority authors who concluded that sanctions are more efficient if they last shorter. 3.3 Impact of economic sanctions on innocent people Harming innocent people is probably the most adverse impact of economic sanctions. Primary goal of economic sanctions is to harm leaders of target country in order to change their views and policy. Although harming is unintentional in most cases, it is also possible that countries senders impose sanctions intentionally. Economic sanctions mostly affect ordinary people of target countries, because imposer countries know that the easiest way to make changes is to turn people against their leaders. Iraq in 1990s is a clear proof that sanctions can kill more people than true military sanctions and irony lies in the fact that almost all dead people were civilians. According to Gordon (1999), imposition of economic sanctions can be compared to siege in old history wars. In those wars, civil casualties are mass and same like those in countries that receive economic sanctions. Prohibition of imports of goods was done in those wars in same way as it is done in today’s imposition of economic sanctions, which creates the biggest problem to those not included in political incidents. When attacking a country with economic sanctions, imposers should avoid innocent casualties in order to make economic sanctions successful and clean. It is very interesting how leaders of powerful countries do not characterize economic sanctions as war crime, even though they have the same impact on innocent people like wars and other types of crimes. Other types of problems that civilians faced with under economic sanctions are increased cost of goods, criminalization (smuggling 211 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo inelastic goods, etc.) and one very dangerous psychical problem which is the increase in radicalism and extremism. Although target sanctions (also called “smart sanctions”) have only certain group that surrounds political head of receiver country for target, they did not show success in avoiding undesirable casualties, such as harming innocent people. Countries that impose sanctions often have hidden intentions and under the policy of removing the dictators they also hurt people they do not like or people considered to be dangerous (murders of Iran’s nuclear scientists). Gavin (1989) argues that discriminating consequences of economic sanctions have key influence on success of those sanctions. Those sanctions could also cause lack of medicines, even though those medicines are rarely under the sanctions. The case of Iraqi sanctions from 1990s proves that economic sanctions exhausted people so much that their incomes decreased to that level, where they were unable to buy medicines. This shows how sanctions harm people, even when medicines and other essential things are out of sanctions. There is an interesting question after all these facts: Do imposer countries think that dictators like Saddam Hussein, Kim Jong Il, and others suffer when sanctions on food and other goods are imposed? Of course not. This situation is even good for dictators, because it can consolidate their position. They control those goods that exist beside sanctions and with them they can control people. As it is mentioned, one of the serious impacts of economic sanctions is emergence of criminalization connected to economic sanction, such as smuggling and other types of crime acts. “The imposition of comprehensive sanctions by the international community unintentionally encouraged much closer state-criminal ties and largescale smuggling” (Andreas, 2005). 4.Classical Cases of Economic Sanctions 4.1.Serbia in 1990s Some of the most comprehensive sanctions were imposed against Yugoslavia (today Serbia) in 1990s. Their politics caused the breakdown of Socialistic Republic of Yugoslavia. The politics of Serbs was different than opinion of other nations within Yugoslavia, and because of that, they wanted to separate from the country. Serbia, as “protector of Yugoslavia”, did not allow other republics to separate, and then the first war since WWII in Europe started. When Europe and the UN saw how severe those conflicts are, they tried to stop them, or at least to decrease their quantity. First action was the imposition of sanctions. Since 1990s and emergence of war conflicts in many parts of world, especially on Balkans, world’s most powerful countries began with massive usage of economic sanctions as tool of foreign policy. In May 1992 Serbia faced with sanctions. Although Serbian authors argue that Milosevic, the president of Yugoslavia, accepted sanctions and they declare sanctions as successful, sanctions did not have so strong impact on suspension of war conflicts. However, sanctions had impact on creation of peace treaty. Sanctions, such as embargo on weapons, directly influenced war in Bosnia, because it was directed only against Bosnian Muslims. First round of economic sanctions was imposed after disobedience to resolution for cease of all conflicts on May 30. Security Council of the United Nations requested embargo on imports of all products produced in Yugoslavia, ban on supply of all goods and commodities to Yugoslavia, except medical supplies and food for hungry people and social cases. All technical and scientific 212 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo exchange as well as visits and cultural exchange, was suspended. Diplomatic visits were reduced to the lowest level. “It also decided that all states should not make available to the authorities in FRY, or to any commercial, industrial or publicly utility undertaking in FRY, any funds or any other financial or economic resources. Air-traffic was also prohibited, as well as participation of persons and groups representing FRY in sporting events” (Delevic, 1998). Original idea for imposition of economic sanctions was to stop conflict and to save people from violation of their basic human rights, but like in almost all of the cases of economic sanctions, the biggest burden of those sanctions was on ordinary people of all republics in Yugoslavia. The impact of sanctions on Serbia’s economy was strong. Data says that income per capita decreased by 50%, from $3240 to $1390. Yugoslavia’s old suppliers suspended all activities in that country and it was hard to find new ones. It was hard and expensive to find other materials that will replace missing one, and furthermore it led to decrease in living standards. Three months after the imposition of economic sanctions, Yugoslavian industrial production fell down by 40%. Figure 2: Index of Industrial production in Yugoslavia Source: Federal Bureau for Statistics, Yugoslavia, 1998 Figure 2 shows the decrease in Yugoslavia’s Industrial Production from 1989 until 1994. First signs of fall were in 1989 with rocky confidence between republics in Yugoslavia and continued with the start of war conflicts in 1991. The sharpest fall started with the imposition of economic sanctions that stroke all aspects of Yugoslavia’s economy. Impact of sanctions on GDP and public spending was enormous. Table 4: Changes in Public spending and revenues % of GDP 1990 1991 1992 1993 Public spending 49 63 65 70 Revenues 46 46 24 11 213 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Source: Author`s own calculations, data from “Economic sanctions as a foreign policy tool”, 2002, pp. 30 According to Table 4, public spending as a percentage of GDP increased during the period of economic sanctions in Yugoslavia, while revenues decreased significantly. Monthly rate of inflation in Yugoslavia in 1993 was 4667%.When it comes to unemployment in Yugoslavia during the imposition of economic sanctions, it is important to mention that unemployment increased enormously in the period of three years (1991-1993), from 14% to 39%. In year 1992, 1.3 million of workers in Yugoslavia were out of work, so called paid leave, and around 750 000 people were unemployed. In terms of employment, sanctions stroke women the most. In 1998, there were 56% of unemployed women. One major fact shaped so high volume of budget deficit in Yugoslavia during the sanction period. Serbs that lived in Croatia and Bosnia, asked for humanitarian help from their mother land Serbia, and every year big amount of government spending went to those people in other countries. According to Jovanovic and Sukovic (2002) percentage of Serbian citizens that lived with less than 2$ per day increased to 39% in 1992, comparing to 14% in 1990. “The percent of income used to purchase food varied between 30 and 40% during 1980-91. In 1993, it rose to a 50%, signaling nutrition emergency. For low income people the rate was even higher - around 60%. In 1991, the average salary bought one food basket for a family of four. In 1993, it bought only 1/5 of the food basket” (Jovanovic, Sukovic, 2002). When it comes to criminalizing consequence of economic sanctions, the best example is Yugoslavia in 1990s. Like in every nondemocratic society, imposition of economic sanctions and other types of sanctions is good opportunity for emergence of criminal actions or even development of existing criminal groups and their actions. Smuggling was the most used criminalizing action during the period of economic sanctions, and while smuggling is illegal act, it was considered as patriotic act during the period of economic sanctions in Yugoslavia (Andreas, 2005). Economic sanctions had positive effects on only one kind of people in Yugoslavia, criminals. Although one goal of economic sanctions was to eliminate Milosevic, the president of Yugoslavia, they did opposite. As it is argued before, economic sanctions are extremely favorable for nondemocratic leaders. The same situation was with Milosevic. He controlled the most important goods (oil, flour, sugar etc.) and all humanitarian help, and he blamed foreign forces for bad economic situation in country. He persuaded his inhabitants that he is able to pull out his country from economic and political darkness and he also supplied groups that supported him with goods that were in shortage. The best example of legal smuggling in Yugoslavia was oil smuggling. Milosevic smuggled oil from Russia through port in Montenegro (another republic of Yugoslavia that was not independent at that time). The distribution of oil was in hands of Milosevic and to him loyal people also. Many authors say that economic sanctions imposed against Yugoslavia were effective because they stop the war. This statement is worthy to discuss. War in Bosnia stopped after the progress that Muslim army made in 1995. Richard Holbrook, American diplomat that created Dayton agreement, admitted that he made mistake when he stop progression of Muslim army in Bosnia, because today’s Bosnia is “Barrel of gunpowder”. Another reason for ending the war in Bosnia was severity of the conflict. Europe and the USA could not allow further extensions of this war that took more than 200 000 human casualties by 1995. This is why, the opinion that economic sanctions ended war in Yugoslavia is funny. Only impacts 214 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo that economic sanctions had are partial obedience of Serbia to the UN, and humanitarian crisis they have created. 4.2.Iran in 2000s Although Iran faced the International rage and economic sanctions after Islamic revolution in 1979, today’s situation is even worse for Iran’s reputation on international scene and especially its economy. During 1990s international community was informed that Iran tries to develop nuclear program for civilian usage. However, in years 2002 and 2003 information about Iran’s hidden enrichment of fuel, leaked. Iran claimed that they do not have hidden intentions and their only purpose of fuel enrichment is to obtain high power from nuclear resources. The USA and Israel have major concerns because of Iran’s “nuclear program” and they threatened Iran with war. According to the USA and Israel, Iran has plans to produce an atomic bomb. Iran declared its full support to Palestinians in their fight for liberty. This is why Israel is afraid of Iran and their nuclear program. Nuclear problem forced the UN to impose many rounds of economic sanctions against Iran. Four rounds of economic and other sanctions are imposed against Iran by the UN since 2006. Also there is huge number of national sanctions imposed by the USA, Japan, Canada, Israel, Australia, South Korea, Switzerland, India, EU, etc. The UN imposed sanctions because of Iran’s refusal to cooperate with International Atomic Energy Agency (IAEA) as well as to suspend all uranium-enrichment activities. The UN sanctions were imposed as follows: first round in 2006, second in 2007, third in 2008 and fourth in 2010. Those sanctions were massive and they hit all parts of Iran’s economy and its population. The UN sanctions included: a ban on exports to Iran of all materials, goods and technology that could be of help for further enrichment of uranium and further development of Iran’s Nuclear Program (INP); a prohibition of any assistance to any person that could manage or help in exports of prohibited goods (mentioned above) to Iran; a ban on exports of all arms and war technology as well as a ban on all financial assistance that could be helpful for Iran’s Nuclear program; asset freeze to all persons that could be involved into development of INP; a travel ban to all persons involved into development of INP and others. Non-UN sanctions also included prohibition of investing into Iran’s gas or oil sector, prohibition of providing Iran’s shipping industry with materials for making ships and their maintenance, etc. EU and the USA, and many other countries focused their sanctions on travel bans for persons that are involved in INP as well as sanctions against major banks in Iran. The latest sanctions imposed against Iran are EU sanctions (23 January, 2012) that targeted Iran’s main industry oil. EU prohibited imports of crude oil from Iran and other petroleum products; all assets of Iran’s Central bank within EU are frozen; trade in precious materials, gold and diamonds is banned. Imposition of those sanctions could cost EU very much. According to World Bank almost 40% of Iran’s oil is bought by EU countries, and even though Europe thinks these sanctions will hit Iran the most, it does not have to be the case. Three biggest buyers of Iran’s oil in EU are Italy, Spain and Greece. Those three countries are endangered by a huge deficit and they are the weakest parts of EU. If they face oil shortage, they could fall into even worse situation than they are in today, and that could be disastrous for Euro zone and common currency. 215 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Figure 3: Europe-Iran crude oil Trade Source: U.S.Energy information administration, 2011, www.eia.gov Figure 3 shows how huge the dependence of some European countries on Iran is, when it comes to the imports of crude oil. Greece, the EU country with the strongest economic problems within the Europe at the moment is the biggest importer of crude oil from Iran. Economic sanctions imposed by many countries of the world, made Iran’s payments harder for execute, and therefore Iran’s imports from many countries is endangered, even imports from those that did not impose sanctions. Lack of hard currency is also a problem for Iran. This is why Iranians have troubles while traveling abroad. Although, International Monetary Fund (IMF) estimated in July last year that percentage of oil in total Iran’s exports will be around 78 %, oil and other energy exports for 2011/2012 is much smaller and its portion within GDP is only 21 %.Hufbauer estimates that latest economic sanctions imposed against Iran could decrease its GDP by 10% (Torchia, 2012). Table 5: Iran’s Average Annual Real GDP Growth Source: Economic Intelligence Unit (World Bank) 216 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo According to Table 5, Iran’s real GDP growth had difficulties during the period of sanctions. Before sanctions, growth was 7.1 in year 2003 and even 7.5 in 2002. But in 2005 it was 4.7. It was estimated that growth in 2010 was 2.9, which is huge difference compared to 2002. Iran had problems with inflation even before economic sanctions, and when they were imposed situation became worse. According to Torchia (2012) inflation rate went to 20% in the last 18 months and analysts assume that the real rate of inflation is even higher. One of the reasons is because sanctions made imports more expensive. As it always happens in economy, higher inflation makes national currency less valuable. One of the areas that were stricken very much is Foreign Direct Investment. Many foreign investors gave up on investing in Iran because of bad political situation. Others gave up because of the USA and the UN pressure. All these things forced foreign investors as well as foreign suppliers out of Iran. Without FDI, Iran’s economy must go down. Figure 4: Foreign Direct Investment in Iran during the sanctions period Source: Iran Ministry of Economy and Finance Figure 4 shows that since imposition of economic sanctions in 2006, Foreign Direct Investment decreased a lot. Although before 2010 there is a small increase, after latest EU sanctions in 2012, FDI will probably decrease a lot. When it comes to efficiency of those economic sanctions imposed against Iran, officials disagree. John Bolton, a senior fellow at the American Enterprise Institute, doubts their efficiency, but admits that sanctions are brutal. Shamuel Bar, Director of Studies at the Institute of Policy and Strategy in Herzliya, says that new stricter economic sanctions will be counterproductive and that they will even improve Iran’s nuclear program (Press TV). Opposite to these opinions, most of European and American politicians and scientists consider economic sanctions efficient and until now successful. Hillary Clinton, Secretary of State, says that sanctions “had slowed Iran’s nuclear program” and that sanctions disturbed Iran’s economy, especially in the two sectors: Exports and banking (NY Times). The USA Congress is preparing new set of sanctions against Iran and they targeted all companies and persons linked to Iranian Revolutionary Guards. Barak Obama imposed sanctions against Iran’s Central bank in order to block financing Iran’s nuclear program (Fox news). 217 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo This announcement came few weeks after Iran threatened to close the Strait of Hormuz through which around 20% of world’s oil passes and that Iran will suspend all oil shipment to Europe (Financial Times). Economic sanctions against Iran had some success indeed, but it is questionable will they reach their final goal. After all these sanctions, Iran must work harder than ever in order to find suitable technologies (and even scientists because many of them are murdered by Mossad and CIA) that will be helpful for development of nuclear program. Figure 5: Iran’s crude oil exports, millions of barrels per day other EU; 0,13 India; 0,33 China; 0,54 Spain; 0,14 Turkey; 0,18 Italy; 0,18 South Korea; 0,24 Other; 0,18 Japan; 0,34 Source: U.S. Energy Information Administration, 2011 Figure 5 shows Iran’s crude oil exports in first six months of 2011. Total exports were 2.26 millions of barrels per one day. As we can see, countries that already declared opposition to oil embargo (India, China, South Korea, Turkey) are importing 1.29 millions of barrels per day from Iran, which is 57% of all Iran’s exports per day. Japan only imposed sanctions on goods that could help Iran’s nuclear program and also hesitate to impose sanctions on oil. EU imposed oil embargo against Iran in January 2012, but its true implementation will start in July. This gives plenty of time to Iran to find other buyers to fulfill the gap that will appear after the EU countries stop importing the oil. China and India (huge markets) already rejected sanctions against Iran and they have announced that they will even increase their imports of oil from Iran. Iran will probably offer their oil at discount prices in order to attract countries to buy excess of oil that will appear after Europe stops buying it (Wall Street Journal). In that situation nothing new will happen. Iran will sell all of its oil and only problem will be the loss of 20-30 billion dollars because of discount. Almost same situation is with other goods that Iran exports. 218 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Figure 6: Iran’s Exports to Selected countries Source: International Monetary Fund According to Figure 6, Iran’s exports with selected countries increased even in the period of sanctions imposed by UN (2006, 2007, and 2008). China, India and Turkey will continue and even increase the import of Iran’s oil (Japan imposed sanctions only against persons involved in nuclear program). All economic sanctions imposed against Iran could be a part of pre-war preparations, as history already showed many times. The idea is to make Iran retarded by imposing arm embargo and to create many collaborators that will cooperate with the USA and Israel in the case of military action, as well as to turn people against their government. When it comes to sanctions itself, Iran’s economy could survive despite them as long as they can find buyers for their oil, which is the major source of Iran’s exports and significant portion of Iran’s GDP. 5.Conclusions Economic sanctions gained on importance nowadays. By using economic tools for achieving political and diplomatic goals, countries around the world try to keep peace or to fulfill their interests. Economic sanctions have been used since WWII as tools for preventing conflicts and for changing political systems of other countries. Since 1990, countries increased usage of these types of sanctions. The most famous sanctions were against Iraq, Yugoslavia, Iran, and Zimbabwe. According to many relevant sources, economic sanctions are generally inefficient. In many studies that examined more than 150 economic sanctions throughout the history, some signs of success are noticeable in small number of cases. Complete success was found in less than 5% of all cases studied. So, it can be concluded that economic sanctions are unsuccessful in achieving their goals. In order to impose successful economic sanctions, countries need sanctions that will have following characteristics: it is better when sanctions are multilateral (countries that receive sanctions are unable to find substitution for missing goods and commodities); sanctions must be imposed by powerful economy and they are more efficient if imposed against poorer economy; sanctions imposed against democratic country have higher chances to be efficient than those imposed against nondemocratic society (if imposed against nondemocratic, they can even be counterproductive, meaning they can 219 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo strengthen the position of the dictator); quick and comprehensive (hit all aspects of economy) sanctions are better than slow (long lasting) and those that are not comprehensive. In addition to this, it is important to say that sanctions are almost always successful when one country that imposes sanctions, controls all trade of country that receives sanctions. Targeted or smart sanctions are those which are planned carefully and which have very narrow part of economy to attack. In order to influence political situation in one country, imposers attack assets (freezing them) of certain persons, companies and groups that are closest and mostly involved in that political situation (for example, to freeze abroad assets of persons involved in political situation of one country). By doing so, imposer countries of sanctions avoid negative side effects and unintentional harming of innocent people. When it comes to the impact of economic sanctions, harming innocent people is negative side effect that everyone emphasizes. It is expected that imposition of sanctions on oil and commodities will harm innocents the most. Real economic consequence of oil embargo is the rise of prices of all goods and services. This increase in prices will affect living expenses of ordinary citizens of a country. All sanctions should be planned in order to avoid harming civilians. This study reveals that almost all sanctions harmed innocent people in every country where they were imposed. Two examples of economic sanctions are taken to be analyzed in this study: economic sanctions imposed against Yugoslavia during the war in 1990s, and economic sanctions imposed against Iran. Many authors emphasize the case of Yugoslavia when they speak about successful sanctions, but severity and number of casualties accelerated the end of the war in that country. These sanctions had many good aspects (imposed multilaterally, against nondemocratic country, very comprehensive) and because of that they were partially efficient in case of forcing Yugoslavia’s president to obedience. To conclude, economic sanctions imposed against Yugoslavia were one of the most comprehensive in human history and partially successful. Iran’s current nuclear sanctions are the most comprehensive ongoing sanctions. The UN imposed four rounds of sanctions against Iran with many unilateral sanctions imposed by other countries, led by the USA sanctions. After examination of Iran’s sanctions in this study it can be concluded that sanctions imposed against Iran are partially efficient because they slowed down Iran’s nuclear program, but inefficient in a way that they could not stop it totally. It might be argued that the real purpose of sanctions against Iran is to exhaust that country in order to attack it and to finish its nuclear program with military action. That would not be first time in history that sanctions ended with military action. To summarize, although sanctions proved to be unsuccessful in most cases they are still in use because every peaceful action is better than military conflict and unnecessary casualties. REFERENCES Amuzegar, J., (1997), Iran’s economy and US sanctions, Middle East Journal, Vol. 51, No. 2, pp. 185-199 Andreas, P.,(2007), Criminalizing consequences of Sanctions: Embargo Busting and Its Legacy, International Studies Quarterly, Vol. 49, No. 2, pp. 335-360 Bruno, G., (2010), Iran’s Nuclear Program, http://www.cfr.org/iran/irans-nuclear-program/p16811 220 Council on Foreign Relations, �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Council of the European Union, (2012), Iran: New EU sanctions target sources of finance for nuclear program, http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/127444.pdf Delevic, M.,(1998), Economic sanctions as a foreign policy tool: The case of Yugoslavia, The International Journal of Peace Studies, Volume 3, Number 1, pp. 1-94. Dimitrijevic, V.(1993), Sanctions, Regime and People, Review of International Affairs, pp. 11-12. Drury, A. 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A.,(1997), Why Economic Sanctions Do Not Work, International Security, Vol. 22, No. 2, pp. 90-136 Patterson, J., (1994), The Sanctions Dilemma, Middle East Report, No. 187/188, Intervention and North-South Politics in the 90's, pp. 24-27 Press TV, (2012), http://www.presstv.ir, (accessed on February 7, 2012) Realite-eu.org, (2012), http://www.realiteeu.org/site/c.9dJBLLNkGiF/b.2267931/k.BD8D/Home.htm, (accessed on February 7, 2012) 221 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Richman S., (1997), The evils of economic sanctions, http://www. fff.org/freedom/0297c.asp, (accessed on December 24, 2012) Rudy, M., and Venteicher J., (2006), Prospect Theory and economic sanctions, Midwest Political Science, pp. 9-11 Talwar, P., (2001), Iran in the balance, Foreign affairs, Vol. 80, No. 4, pp.58-71 The Economist, (2012), http://www.economist.com, (accessed on February 7, 2012) Today’s Zeman, (2010), http://www.todayszaman.com/mainAction.action, (accessed on February 7, 2012) Torbat, A. E., (2005), Impact of the US trade and Financial sanctions on Iran, The world economy, Volume 28, Issue 3, pages 407–434 Torchia, A.,(2012), Analysis: Iran economy could limp along under sanctions, Reuters, http://ca.reuters.com/article/topNews/idCATRE8150MH20120206, pp. 1-8. Wallensteen, P.,(1968), Characteristics of Economic Sanctions, Journal of Peace Research, Vol. 5, No. 3 pp. 248-267 Wall Street Journal, (2012), http://europe.wsj.com/home-page, (accessed on February 7, 2012) Risk Tolerance and Investment Preferences in Bosnia and Herzegovina Mela Hadrovic, Ugur Ergun International Burch University, Faculty of Economics, 71000, Sarajevo, Bosnia and Herzegovina. E-mails: mela_hadrovic@hotmail.com, uergun@ibu.edu.ba Abstract Risk tolerance is considered as an important factor in making financial decisions, saving and investment choices. This paper has examined level of investment risk tolerance and investment preferences of B&H’s population and it had explored whether demographic and socioeconomic factors to risk tolerance and investment preferences. Using a randomly chosen sample of 200 individuals above the age of 20, empirical analysis has shown that above independent variables that are significantly affecting individual’s risk tolerance are income level, education level and gender. Regression analysis has proven that above average risk tolerance is associated with higher income level and higher education level. Moreover, analysis has supported the assumption that males are more risk tolerant then females. Regarding the investment preferences, obtained results show that the out of eight independent variables, only variable measuring whether an individual has a financial commitment is significantly negatively related to the investment. 222 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1326 Title A name given to the resource Efficiency and Impact of Economic Sanctions Author Author Ilham, Redzic Abstract A summary of the resource. The purpose of this paper is to examine economic sanctions as a foreign policy instrument and to give judgment to their efficiency and impact. Since WWI economic sanctions have been used as a tool for preventing conflicts and signaling instrument of foreign policy. Their efficiency and impact have been the main topics for many discussions. Since the War in Yugoslavia in 1991, economic sanctions gained on their importance and usage. Two classical examples of economic sanctions will be discussed in this paper: War in Yugoslavia and sanctions against Iran. Economic sanctions appear to be unsuccessful in most cases and their usual victims are innocent inhabitants. Keywords: Economic sanctions, efficiency of economic sanctions, Yugoslavia, Iran. Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance